Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-32657 | ||
Entity Registrant Name | NABORS INDUSTRIESĀ LTD | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-0363970 | ||
Entity Address, Address Line One | Crown House | ||
Entity Address, Address Line Two | Second Floor | ||
Entity Address, Address Line Three | 4 Par-la-Ville Road | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, Country | BM | ||
Entity Address, Postal Zip Code | HM08 | ||
City Area Code | 441 | ||
Local Phone Number | 292-1510 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 367,128,412 | ||
Entity Public Float | $ 1,007,634,972 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001163739 | ||
Amendment Flag | false | ||
Mandatory Convertible Preferred Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred shares, 6.00% Mandatory Convertible Preferred Shares, Series A, $.001 par value per share | ||
Trading Symbol | NBR.PRA | ||
Security Exchange Name | NYSE | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common shares, $.001 par value per share | ||
Trading Symbol | NBR | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 435,990 | $ 447,766 |
Short-term investments | 16,506 | 34,036 |
Accounts receivable, net | 453,042 | 756,320 |
Inventory, net | 176,341 | 165,587 |
Assets held for sale | 2,530 | 12,250 |
Other current assets | 164,257 | 177,604 |
Total current assets | 1,248,666 | 1,593,563 |
Property, plant and equipment, net | 4,930,549 | 5,467,870 |
Goodwill | 28,380 | 183,914 |
Deferred income taxes | 305,844 | 345,091 |
Other long-term assets | 247,219 | 263,506 |
Total assets (1) | 6,760,658 | 7,853,944 |
Current liabilities: | ||
Current portion of debt | 561 | |
Trade accounts payable | 295,159 | 392,843 |
Accrued liabilities | 333,282 | 417,912 |
Income taxes payable | 14,628 | 20,761 |
Current lease liabilities | 13,479 | |
Total current liabilities | 656,548 | 832,077 |
Long-term debt | 3,333,220 | 3,585,884 |
Other long-term liabilities | 292,184 | 274,485 |
Deferred income taxes | 3,149 | 6,311 |
Total liabilities (1) | 4,285,101 | 4,698,757 |
Commitments and contingencies (Note 15) | ||
Redeemable noncontrolling interest in subsidiary (Note 13) | 425,392 | 404,861 |
Shareholders' equity: | ||
Preferred shares, par value $0.001 per share: Series A 6% Cumulative Mandatory Convertible; $50 per share liquidation preference; issued 5,613 and 5,750, respectively | 6 | 6 |
Common shares, par value $0.001 per share: Authorized common shares 800,000; issued 416,198 and 409,652, respectively | 416 | 410 |
Capital in excess of par value | 3,412,972 | 3,392,937 |
Accumulated other comprehensive income (loss) | (11,788) | (29,325) |
Retained earnings (accumulated deficit) | (104,775) | 650,842 |
Less: treasury shares, at cost, 52,800 and 52,800 common shares, respectively | (1,314,020) | (1,314,020) |
Total shareholders' equity | 1,982,811 | 2,700,850 |
Noncontrolling interest | 67,354 | 49,476 |
Total equity | 2,050,165 | 2,750,326 |
Total liabilities and equity | $ 6,760,658 | $ 7,853,944 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, rate (as a percent) | 6.00% | 6.00% |
Preferred stock, liquidation preference (in dollars per share) | $ 50 | $ 50 |
Preferred stock, shares issued | 5,613 | 5,750 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized | 800,000 | 800,000 |
Common shares, shares issued | 416,198 | 409,652 |
Treasury shares, at cost | 52,800 | 52,800 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues and other income: | |||
Operating revenues | $ 3,043,383 | $ 3,057,619 | $ 2,564,285 |
Earnings (losses) from unconsolidated affiliates | (5) | 1 | 7 |
Investment income (loss) | 10,218 | (9,499) | 1,194 |
Total revenues and other income | 3,053,596 | 3,048,121 | 2,565,486 |
Costs and other deductions: | |||
Direct costs | 1,929,331 | 1,976,974 | 1,718,069 |
General and administrative expenses | 258,731 | 265,822 | 251,184 |
Research and engineering | 50,359 | 56,147 | 51,069 |
Depreciation and amortization | 876,091 | 866,870 | 842,943 |
Interest expense | 204,311 | 227,124 | 222,889 |
Impairments and other charges | 290,471 | 144,446 | 44,536 |
Other, net | 33,224 | 29,532 | 14,880 |
Total costs and other deductions | 3,642,518 | 3,566,915 | 3,145,570 |
Income (loss) from continuing operations before income taxes | (588,922) | (518,794) | (580,084) |
Income tax expense (benefit): | |||
Current | 55,625 | 2,388 | (102,080) |
Deferred | 35,951 | 76,881 | 19,110 |
Total income tax expense (benefit) | 91,576 | 79,269 | (82,970) |
Income (loss) from continuing operations, net of tax | (680,498) | (598,063) | (497,114) |
Income (loss) from discontinued operations, net of tax | (12) | (14,663) | (43,519) |
Net income (loss) | (680,510) | (612,726) | (540,633) |
Less: Net (income) loss attributable to noncontrolling interest | (22,375) | (28,222) | (6,178) |
Net income (loss) attributable to Nabors | (702,885) | (640,948) | (546,811) |
Less: Preferred stock dividend | (17,244) | (12,305) | |
Net income (loss) attributable to Nabors common shareholders | (720,129) | (653,253) | (546,811) |
Amounts attributable to Nabors common shareholders: | |||
Net income (loss) from continuing operations | (720,117) | (638,590) | (503,292) |
Net income (loss) from discontinued operations | (12) | (14,663) | (43,519) |
Net income (loss) attributable to Nabors common shareholders | $ (720,129) | $ (653,253) | $ (546,811) |
Earnings (losses) per share: | |||
Basic from continuing operations (in dollars per share) | $ (2.11) | $ (1.95) | $ (1.75) |
Basic from discontinued operations (in dollars per share) | (0.04) | (0.15) | |
Total Basic (in dollars per share) | (2.11) | (1.99) | (1.90) |
Diluted from continuing operations (in dollars per share) | (2.11) | (1.95) | (1.75) |
Diluted from discontinued operations (in dollars per share) | (0.04) | (0.15) | |
Total Diluted (in dollars per share) | $ (2.11) | $ (1.99) | $ (1.90) |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 351,617 | 334,397 | 280,653 |
Diluted (in shares) | 351,617 | 334,397 | 280,653 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
Net income (loss) attributable to Nabors | $ (262,684) | $ (118,928) | $ (203,564) | $ (117,709) | $ (183,418) | $ (114,577) | $ (198,752) | $ (144,201) | $ (702,885) | $ (640,948) | $ (546,811) |
Other comprehensive income (loss), before tax: | |||||||||||
Translation adjustment attributable to Nabors | 16,943 | (31,962) | 28,372 | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | (6,061) | ||||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 970 | ||||||||||
Unrealized gains (losses) on marketable securities | (5,091) | ||||||||||
Pension liability amortization and adjustment | 217 | 216 | (275) | ||||||||
Unrealized gains (losses) and amortization on cash flow hedges. | 567 | 567 | 613 | ||||||||
Adoption of ASU No. 2016-01 | (9,144) | ||||||||||
Other comprehensive income (loss), before tax | 17,727 | (40,323) | 23,619 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 190 | 187 | 315 | ||||||||
Other comprehensive income (loss), net of tax | 17,537 | (40,510) | 23,304 | ||||||||
Comprehensive income (loss) attributable to Nabors | (685,348) | (681,458) | (523,507) | ||||||||
Net income (loss) attributable to noncontrolling interest | $ (21,827) | $ 19,297 | $ 10,729 | $ 14,176 | $ 17,796 | $ 6,934 | $ 2,953 | $ 539 | 22,375 | 28,222 | 6,178 |
Translation adjustment attributable to noncontrolling interest | 55 | (251) | 282 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 22,430 | 27,971 | 6,460 | ||||||||
Comprehensive income (loss) | $ (662,918) | $ (653,487) | $ (517,047) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (680,510) | $ (612,726) | $ (540,633) |
Adjustments to net income (loss): | |||
Depreciation and amortization | 876,103 | 868,509 | 845,439 |
Deferred income tax expense (benefit) | 35,894 | 71,579 | 9,096 |
Impairments and other charges | 213,404 | 62,578 | 42,188 |
Amortization of debt discount and deferred financing costs | 30,931 | 32,213 | 27,583 |
Losses (gains) on debt buyback | (11,468) | 5,268 | 16,005 |
Losses (gains) on long-lived assets, net | 40,346 | 95,741 | 19,064 |
Losses (gains) on investments, net | (1,257) | 14,195 | 972 |
Provision (recovery) of bad debt | 20,626 | 1,285 | 3,083 |
Share-based compensation | 24,660 | 26,396 | 31,896 |
Foreign currency transaction losses (gains), net | 20,876 | 4,235 | 1,604 |
Noncontrolling interest | (22,375) | (28,222) | (6,178) |
Equity in (earnings) losses from unconsolidated affiliates, net of dividends | 5 | 164 | (7) |
Other | 667 | 720 | 636 |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | 276,685 | (66,486) | (168,436) |
Inventory | (18,695) | (13,981) | (17,444) |
Other current assets | 5,157 | 31,770 | 16,518 |
Other long-term assets | 13,106 | 11,717 | 28,772 |
Trade accounts payable and accrued liabilities | (142,857) | (76,561) | 79,204 |
Income taxes payable | (4,857) | (41,939) | 14,811 |
Other long-term liabilities | 8,117 | (60,682) | (341,417) |
Net cash provided by (used for) operating activities | 684,558 | 325,773 | 62,756 |
Cash flows from investing activities: | |||
Purchases of investments | (4,323) | (676) | (6,722) |
Sales and maturities of investments | 18,849 | 4,287 | 13,069 |
Cash paid for acquisition of businesses, net of cash acquired | (2,929) | (20,859) | 12,319 |
Capital expenditures | (427,741) | (458,938) | (574,467) |
Proceeds from sales of assets and insurance claims | 60,288 | 109,098 | 57,933 |
Net cash (used for) provided by investing activities | (355,856) | (367,088) | (497,868) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 800,000 | 411,200 | |
Reduction in long-term debt | (455,360) | (878,278) | (381,814) |
Debt issuance costs | (1,767) | (21,277) | (11,043) |
Proceeds from revolving credit facilities | 1,050,000 | 1,135,000 | 725,000 |
Reduction in revolving credit facilities | (865,000) | (1,475,000) | (215,000) |
Proceeds from (payment for) commercial paper | (40,000) | 40,000 | |
Cash proceeds (payments) from equity component of exchangeable debt | 159,952 | ||
Purchase of capped call hedge transactions | (40,250) | ||
Payments on term loan | (162,500) | ||
Proceeds from short-term borrowings | 380 | ||
Payments for short-term borrowings | (561) | (543) | |
Proceeds from issuance of common shares, net of issuance costs | 301,404 | 8,300 | |
Proceeds from issuance of preferred stock, net of issuance costs | 277,927 | ||
Repurchase of common shares | (18,071) | ||
Dividends to common and preferred shareholders | (49,583) | (87,098) | (68,503) |
Redeemable noncontrolling interest contribution | 156,935 | 61,123 | |
Noncontrolling interest contribution | 20,000 | ||
Distributions to noncontrolling interest | (4,552) | (5,452) | (7,272) |
Other | (4,750) | (8,912) | (8,399) |
Net cash (used for) provided by financing activities | (331,573) | 155,629 | 512,180 |
Effect of exchange rate changes on cash and cash equivalents | (6,171) | (5,263) | (29) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (9,042) | 109,051 | 77,039 |
Cash and cash equivalents and restricted cash, beginning of period | 451,080 | 342,029 | 264,990 |
Cash and cash equivalents and restricted cash, end of period | 442,038 | 451,080 | 342,029 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents, beginning of period | 447,766 | 336,997 | 264,093 |
Restricted cash, beginning of period | 3,314 | 5,032 | 897 |
Cash and cash equivalents and restricted cash, beginning of period | 451,080 | 342,029 | 264,990 |
Cash and cash equivalents, end of period | 435,990 | 447,766 | 336,997 |
Restricted cash, end of period | 6,048 | 3,314 | 5,032 |
Cash and cash equivalents and restricted cash, end of period | $ 442,038 | $ 451,080 | $ 342,029 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Mandatory Convertible Preferred SharesPreferred Stock | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Treasury Shares | Non-controlling Interest | Total |
Balance at the beginning 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 | |||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (546,811) | 6,178 | (540,633) | |||||
Dividends declared to common shareholders | (68,612) | (68,612) | ||||||
Repurchase of treasury shares | (18,071) | (18,071) | ||||||
Other comprehensive income (loss), net of tax | 23,304 | 282 | 23,586 | |||||
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options | $ 1 | (10,736) | (10,735) | |||||
Issuance of common shares for stock options exercised, net of surrender of unexercised stock options (in shares) | 842 | |||||||
Equity component of exchangeable debt | 116,195 | 116,195 | ||||||
Capped call transactions | (40,250) | (40,250) | ||||||
Adoption of ASU No. 2016-09 | 1,943 | 5,150 | 7,093 | |||||
Share-based compensation | 31,896 | 31,896 | ||||||
Issuance to Tesco shareholders | $ 32 | 178,961 | 178,993 | |||||
Issuance to Tesco shareholders (in shares) | 32,078 | |||||||
Noncontrolling interest contributions (distributions) | 13,018 | 13,018 | ||||||
Other | $ 1 | (8,212) | (291) | (8,502) | ||||
Other (in shares) | 992 | |||||||
Balance at the end of the period at Dec. 31, 2017 | $ 368 | 2,791,129 | 11,185 | 1,423,154 | (1,314,020) | 26,957 | 2,938,773 | |
Balance (in shares) at Dec. 31, 2017 | 367,510 | |||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (640,948) | 28,222 | (612,726) | |||||
Dividends declared to common shareholders | (82,973) | (82,973) | ||||||
Dividends declared to preferred shareholders | (12,305) | (12,305) | ||||||
Common share issuance | $ 40 | 301,363 | 301,403 | |||||
Common share issuance (in shares) | 40,250 | |||||||
Convertible preferred share issuance | $ 6 | 277,921 | 277,927 | |||||
Convertible preferred share issuance (in shares) | 5,750 | |||||||
Other comprehensive income (loss), net of tax | (40,510) | (251) | (40,761) | |||||
Share-based compensation | 26,396 | 26,396 | ||||||
Adjustment to retained earnings | Accounting Standards Update 2016-01 | (9,144) | 9,144 | 9,144 | |||||
Adjustment to retained earnings | Accounting Standards Update 2016-16 | (34,132) | (34,132) | ||||||
Noncontrolling interest contributions (distributions) | (5,452) | (5,452) | ||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (11,098) | (11,098) | ||||||
Other | $ 2 | (3,872) | (3,870) | |||||
Other (in shares) | 1,892 | |||||||
Balance at the end of the period at Dec. 31, 2018 | $ 6 | $ 410 | 3,392,937 | (29,325) | 650,842 | (1,314,020) | 49,476 | 2,750,326 |
Balance (in shares) at Dec. 31, 2018 | 5,750 | 409,652 | ||||||
Increase (Decrease) in Equity | ||||||||
Net income (loss) | (702,885) | 22,375 | (680,510) | |||||
Dividends declared to common shareholders | (14,953) | (14,953) | ||||||
Dividends declared to preferred shareholders | (17,245) | (17,245) | ||||||
Other comprehensive income (loss), net of tax | 17,537 | 55 | 17,592 | |||||
Share-based compensation | 24,659 | 24,659 | ||||||
Adjustment to retained earnings | 0 | |||||||
Noncontrolling interest contributions (distributions) | (4,552) | (4,552) | ||||||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (20,534) | (20,534) | ||||||
Other | $ 6 | (4,624) | (4,618) | |||||
Other (in shares) | (137) | 6,546 | ||||||
Balance at the end of the period at Dec. 31, 2019 | $ 6 | $ 416 | $ 3,412,972 | $ (11,788) | $ (104,775) | $ (1,314,020) | $ 67,354 | $ 2,050,165 |
Balance (in shares) at Dec. 31, 2019 | 5,613 | 416,198 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | Feb. 20, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Dividends to common shareholders (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.24 | $ 0.24 |
Dividends to preferred shareholders (in dollars per share) | $ 2.14 | $ 2.14 | ||
Mandatory Convertible Preferred Shares | ||||
Dividends to preferred shareholders (in dollars per share) | $ 0.75 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Operations. | |
Nature of Operations | Note 1 Nature of Operations ā Unless the context requires otherwise, references in this annual report to āwe,ā āus,ā āour,ā āthe Company,ā or āNaborsā mean Nabors Industries Ltd., together with our subsidiaries where the context requires. References in this annual report to āNabors Delawareā mean Nabors Industries, Inc., a wholly owned subsidiary of Nabors. ā Our business is comprised of our global land-based and offshore drilling rig operations and other rig related services and technologies. These services include tubular running services, wellbore placement solutions, directional drilling, measurement-while-drilling (āMWDā), logging-while-drilling (āLWDā) systems and services, equipment manufacturing, rig instrumentation and optimization software. ā The consolidated financial statements and related footnotes are presented in accordance with U.S. GAAP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies ā Principles of Consolidation ā 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 U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. ā In addition to the consolidation of our majority owned subsidiaries, we also consolidate variable interest entities (āVIEāsā) when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. Our joint venture, SANAD, which is equally owned by Saudi Aramco and Nabors, has been consolidated. As we have the power to direct activities that most significantly impact SANADās economic performance, including operations, maintenance and certain sourcing and procurement, we have determined Nabors to be the primary beneficiary. See Note 13āJoint Ventures. ā Cash and Cash Equivalents ā Cash and cash equivalents include demand deposits and various other short-term investments with original maturities of three months or less. ā Short-term Investments ā Short-term investments consist primarily of equity securities which are stated at fair value with any changes in fair value recognized in investment income (loss) in our consolidated statements of income (loss). ā Inventory ā 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 $35.0 million and $27.9 million as of December 31, 2019 and 2018, respectively, included the following: ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Raw materials ā $ 130,414 ā $ 116,840 ā Work-in-progress ā 5,498 ā 20,329 ā Finished goods ā 40,429 ā 28,418 ā ā ā $ 176,341 ā $ 165,587 ā ā Property, Plant and Equipment ā 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 rigs using the units-of-production method. For each day a rig is operating, we depreciate it over an approximate 4,927 8,030 30 ā Depreciation on our buildings, oilfield hauling and mobile equipment, 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 (buildingsā 10 3 ā 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 assetās 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. Significant and unanticipated changes to the assumptions could result in future impairments. A significantly prolonged period of lower oil and natural gas prices could 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. ā 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 a long-lived asset that is held and used. ā Goodwill ā 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 the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of one of our reporting units is greater than its carrying amount. If the carrying amount exceeds the fair value, an impairment charge will be recognized in an amount equal to the excess; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ā 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, which require the use of significant unobservable inputs, representative of a Level 3 fair value measurement. Our cash flow models involve 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 fair value estimates of these reporting units are sensitive to varying dayrates, utilization and costs. A significantly prolonged period of lower oil and natural gas prices, other than those assumed in developing our forecasts, or changes in laws and regulations could adversely affect the demand for and prices of our services, which could in turn result in future goodwill and other intangible asset impairment charges for these reporting units due to the potential impact on our estimate of our future operating results. 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 approximately 2%. ā 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 unitsā 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. ā The change in the carrying amount of goodwill for our segments for the years ended December 31, 2019 and 2018 was as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Acquisitions ā ā ā ā ā ā ā ā ā ā ā ā ā and ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā Purchase ā Disposals ā Cumulative ā ā ā Balance at ā ā December 31, ā Price ā and ā Translation ā Other ā December 31, ā ā 2017 ā Adjustments ā Impairments ā Adjustment ā Adjustments ā 2018 ā ā (In thousands) U.S. Drilling ā $ 50,149 ā $ ā ā $ ā ā $ ā ā $ ā ā $ 50,149 ā International Drilling ā ā 75,634 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 75,634 ā Drilling Solutions ā ā ā ā ā 11,436 (1) ā ā ā ā ā ā ā ā ā ā 11,436 ā Rig Technologies ā 47,443 ā ā ā ā ā (748) ā ā ā 46,695 ā Total ā $ 173,226 ā $ 11,436 ā $ ā ā $ (748) ā $ ā ā $ 183,914 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Acquisitions ā ā ā ā ā ā ā ā ā ā ā ā ā and ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā Purchase ā Disposals ā Cumulative ā ā ā Balance at ā ā December 31, ā Price ā and ā Translation ā Other ā December 31, ā ā 2018 ā Adjustments ā Impairments ā Adjustment ā Adjustment ā 2019 ā ā (In thousands) U.S. Drilling ā $ 50,149 ā $ ā ā $ (52,203) (2) $ ā ā $ 2,054 ā $ ā ā International Drilling ā ā 75,634 ā ā ā ā ā (75,634) (2) ā ā ā ā ā ā ā ā ā Drilling Solutions ā 11,436 ā ā ā ā ā ā ā ā ā 11,436 ā Rig Technologies ā 46,695 ā ā ā (28,136) (2) 439 ā (2,054) ā 16,944 ā Total ā $ 183,914 ā $ ā ā $ (155,973) ā $ 439 ā $ ā ā $ 28,380 ā (1) Represents the goodwill recorded in connection with our acquisition of PetroMar Technologies. See Note 5āAcquisitions for additional discussion. (2) We determined the carrying value of some of our reporting units exceeded their fair value. As such, we recognized a goodwill impairment of $156.0 million. See Note 3āImpairments and Other Charges. ā Goodwill for the consolidated company, totaling approximately $8.2 million, is expected to be deductible for tax purposes. ā Litigation and Insurance Reserves ā 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 15āCommitments 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. ā Revenue Recognition ā We recognize revenues and costs on daywork contracts daily as the work progresses over the contract term. 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. ā 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. ā We recognize revenue for top drives and other capital equipment we manufacture upon transfer of control, which generally occurs when the product has been shipped to the customer. ā We recognize, as operating revenue, proceeds from business interruption insurance claims in the period that the claim is realizable. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in other, net in our consolidated statement of income (loss) 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 in our consolidated statement of income (loss). ā We recognize reimbursements received for out of pocket expenses incurred as revenues and account for out of pocket expenses as direct costs. ā Research and Engineering ā 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 Robotic Drilling Systems AS (āRDSā) and PetroMar Technologies, we recorded intangible assets related to in process research and development of $32.5 million and $21.7 million, respectively. 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, 2019, 2018 or 2017. ā Income Taxes ā 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. ā On December 22, 2017, the United States enacted the Tax Cut and Jobs Act of 2017 (āTax Reform Actā). Among a number of significant changes to the current U.S. federal income tax rules, the Tax Reform Act reduces the marginal U.S. corporate income tax rate from 35 percent down to 21 percent, limits the current deduction for net interest expense, limits the use of net operating losses to offset future taxable income, and imposes a type of minimum tax designed to reduce the benefits derived from intercompany transactions and payments that result in base erosion. As a result of the Tax Reform Act, we were required to revalue deferred tax assets and liabilities from 35 percent to 21 percent and recognized expense of approximately $138.6 million, which is included as a component of income tax expense in continuing operations for the year ended December 31, 2017. Our US operations do not have any controlled foreign corporations and as such are not subject to the Global Intangible Low-Taxed Income provisions of the Tax Reform Act. ā We recognize increases to our tax reserves for uncertain tax positions along with interest and penalties as an increase to other long-term liabilities. ā 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. ā Foreign Currency Translation ā 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). ā Use of Estimates ā The preparation of financial statements in conformity with U.S. 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: ā ā depreciation of property, plant and equipment; ā ā impairment of long-lived assets; ā ā impairment of goodwill and intangible assets; ā ā income taxes; ā ā litigation and self-insurance reserves; and ā ā fair value of assets acquired and liabilities assumed. ā Recent Accounting Pronouncements Adopted ā In February 2016, the FASB issued ASU No. 2016-02, Leases, relating to leases to increase transparency and comparability among companies. This standard requires that 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 requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. We adopted this guidance under the modified retrospective approach as of January 1, 2019. We preliminarily determined that our drilling contracts contained a lease component, and the adoption would require us to separately recognize revenue associated with the lease and services components. In July 2018, the FASB issued ASU No. 2018-11, which provides a practical expedient that allows entities to combine lease and non-lease components where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. Our drilling contracts contain a lease component related to the underlying drilling equipment, in addition to the service component provided by our crews and our expertise to operate such drilling equipment. We have determined that the non-lease service component of our drilling contracts is the predominant element of the combined component and will account for the combined components as a single performance obligation under Topic 606, Revenue from Contracts with Customers. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. With respect to leases whereby we are the lessee, we recognized upon adoption on January 1, 2019 lease liabilities and offsetting " right of use ā In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. In addition, the standard requires certain disclosures regarding stranded tax effects. This guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have elected to not reclassify the stranded tax effects within accumulated other comprehensive income to retained earnings and therefore there is no impact on our consolidated financial statements. ā Recent Accounting Pronouncements Not Yet Adopted ā In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes accounting requirements for the recognition of credit losses from an incurred or probable impairment methodology to a current expected credit losses (CECL) methodology. The guidance is effective for interim and annual periods beginning after December 15, 2019. The guidance will be applied using the modified retrospective method with a cumulative effect adjustment to beginning retained earnings. Trade receivables (including the allowance for doubtful accounts) is the only financial instrument in scope for ASU 2016-13 currently held by the Company. We are currently evaluating the effect the guidance will have on our consolidated financial statements. |
Impairments and Other Charges
Impairments and Other Charges | 12 Months Ended |
Dec. 31, 2019 | |
Impairments and Other Charges | |
Impairments and Other Charges | Note 3 Impairments and Other Charges ā The components of impairments and other charges are provided below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā 2019 2018 2017 ā ā ā (In thousands) ā Tangible Assets & Equipment: ā ā ā ā ā ā ā ā ā ā ā Provision for retirement of assets ā ā $ 33,205 ā $ 14,617 ā $ ā ā Impairment of long-lived assets ā ā ā 10,363 ā ā 45,570 ā ā 6,895 ā Subtotal ā ā ā 43,568 ā ā 60,187 ā ā 6,895 ā ā ā ā ā ā ā ā ā ā ā ā ā Goodwill & Intangible Assets: ā ā ā ā ā ā ā ā ā ā ā Goodwill impairments ā ā ā 155,973 ā ā ā ā ā ā ā Intangible asset impairment ā ā ā 47,731 ā ā ā ā ā ā ā Subtotal ā ā ā 203,704 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other Charges: ā ā ā ā ā ā ā ā ā ā ā Provision for international activities ā ā ā 43,220 ā ā ā ā ā ā ā Severance and transaction-related costs ā ā ā 11,447 ā ā 14,323 ā ā 21,628 ā Loss (gain) on debt buyback ā ā ā (11,468) ā ā 5,268 ā ā 16,013 ā Divestiture of International assets ā ā ā ā ā ā 64,668 ā ā ā ā Total ā ā $ 290,471 ā $ 144,446 ā $ 44,536 ā ā For the year ended December 31, 2019 ā Tangible Assets and Equipment ā During 2019, as a result of the extended period of reduced demand for some of our legacy asset classes, we retired some of our rigs within our Canada Drilling and International Drilling reportable segments resulting in a loss of $17.8 million and $15.4 million, respectively. Additionally, we recorded impairments totaling $2.5 million comprised of underutilized offshore platform rigs in our International Drilling reportable segment. These impairments resulted from the lack of future contractual opportunities on specific rigs as result of current market conditions across certain geographic regions. The balance of the impairment charge primarily related to obsolete inventory within our Rig Technologies reportable segment. ā Goodwill impairments ā During 2019, we recognized goodwill impairment charges of $156.0 million. As part of our annual goodwill impairment test performed during the second quarter of 2019, we determined the carrying value of some of our reporting units exceeded their fair value. As such, we recognized impairments of $75.6 million for the remaining goodwill balance attributable to our International Drilling operating segment and $18.0 million for a partial impairment to our goodwill balance attributable to the acquisition of 2TD reported within our Rig Technologies operating segment. These non-cash pre-tax impairment charges were primarily the result of a sustained decline in our market capitalization and lower future cash flow projections due to expectations for future commodity prices below previous projections and the resulting impact on the lower demand projections for our products and services within these reporting units. ā During the fourth quarter of 2019, due to current industry conditions such as the drop in U.S. rig count as well as the recent commodity prices and the corresponding impact on future expectations of demand for our products and services, including the effect that these factors have had on our stock price, we performed a quantitative impairment assessment of our goodwill as of December 31, 2019. Based on the results of our goodwill test, we recognized additional impairment charges of $52.2 million for the remaining goodwill balance attributable to our U.S. Drilling operating segment and $10.1 million for the remaining goodwill balance attributable to the acquisition of 2TD within our Rig Technologies operating segment. ā ā Intangible impairments ā We determined the fair value of our rotary steerable tools in-process research and development intangible asset associated with our acquisition of 2TD was less than the current book value. As such, we recognized an impairment of $47.7 million to write off the intangible asset due to uncertainty in commercialization and demand stemming from lower commodity prices and rig counts. ā Provision for international activities ā During 2019, we recorded provisions aggregating to $43.2 million for certain assets, including receivables related to our international activities. The provisions were attributable to a number of foreign countries, which have been adversely impacted by foreign sanctions or other political risk issues, bankruptcies or other financial problems. ā Severance and transaction related costs ā During 2019, we recognized charges of $11.4 million due to severance and other related costs incurred to right-size our cost structure. ā Loss (gain) on early extinguishment of debt ā During 2019, we repurchased $468.3 million aggregate principal amount of our senior notes and recognized a gain of $11.5 million as part of the debt extinguishment. See Note 10āDebt for additional discussion. ā For the year ended December 31, 2018 ā Tangible Assets and Equipment ā During 2018, as a result of the decline in oil and gas prices in the fourth quarter and the extended period of reduced demand for some of our legacy asset classes, we retired 13 of our remaining SCR rigs within the U.S. Drilling reportable segment resulting in a loss of $14.6 million. Additionally, we recorded impairments totaling $45.6 million primarily comprised of underutilized rigs in our International Drilling and U.S. Drilling reportable segments. These impairments were deemed necessary due to the lack of future contractual opportunities on specific rigs as result of a change in market conditions across certain geographic regions. The balance of the impairment charge primarily related to obsolete inventory within our Rig Technologies reportable segment. ā Transaction related costs ā During 2018, we incurred $14.3 million in transaction related costs, including professional fees, severances, facility closure costs and other cost rationalization items, primarily in connection with the acquisition of Tesco. ā Loss (gain) on early extinguishment of debt ā During 2018, we repurchased $873.0 million aggregate principal amount of our senior notes. We paid the holders an aggregate of approximately $906.5 million in cash, reflecting principal and accrued and unpaid interest and prepayment premium and recognized a loss of $5.3 million as part of the debt extinguishment. See Note 10āDebt for additional discussion. ā Divestiture of International assets ā During 2018, we recognized a loss of $64.7 million on the sale of three offshore drilling rigs and eight workover rigs within our International Drilling reportable segment. ā ā ā ā For the year ended December 31, 2017 ā Tangible Assets and Equipment ā In 2017, we recorded impairments totaling $6.9 million primarily comprised of underutilized rigs in our International Drilling reportable segment. These impairments were deemed necessary due to the lack of future contractual opportunities because the rigs were smaller and lower horsepower than our newer rigs and also rigs competing in an overcrowded offshore market. ā Transaction related costs ā During 2017, we incurred $21.6 million in transaction related costs, including professional fees, severances, facility closure costs and other cost rationalization items, primarily in connection with the acquisition of Tesco. ā Loss (gain) on early extinguishment of debt ā During 2017, we repurchased $367.9 million aggregate principal amount of our senior notes. We paid the holders an aggregate of approximately $381.7 million in cash, reflecting principal and accrued and unpaid interest and prepayment premium and recognized a loss of $16.0 million as part of the debt extinguishment. See Note 10āDebt for additional discussion. |
Accounts Receivable Sales Agree
Accounts Receivable Sales Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable Sales Agreement | |
Accounts Receivable Sales Agreement | Note 4 Accounts Receivable Sales Agreement ā On September 13, 2019, we entered into a $250.0 million accounts receivable sales agreement (the āA/R Agreementā) whereby certain U.S. operating subsidiaries of the Company (collectively, the āOriginatorsā), sold or contributed, and will on an ongoing basis continue to sell or contribute, certain of its domestic trade accounts receivables to a wholly-owned, bankruptcy-remote, special purpose entity (the āSPEā and āSellerā). The SPE would in turn, sell, transfer, convey and assign to third-party financial institutions (the āPurchasersā), all the rights, title and interest in and to its pool of eligible receivables. The sale of these receivables qualified for sale accounting treatment in accordance with ASC 860. During the period of this program, cash receipts from the Purchasers at the time of the sale were classified as operating activities in our consolidated statement of cash flows. Subsequent collections on the pledged receivables, which were not sold, will be classified as operating cash flows in our consolidated statement of cash flows at the time of collection. ā Nabors Delaware and/or another subsidiary of Nabors will act as servicers of the sold receivables. The servicers administer, collect and otherwise enforce these receivables and are compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. The servicers initially receive payments made by obligors on the receivables, then remit those payments in accordance with the Receivables Purchase Agreement. The servicers and the Originators have contingent indemnification obligations to the SPE, and the SPE has contingent indemnification obligations to the Purchasers, in each case customary for transactions of this type. These contingent indemnification obligations are guaranteed by the Company pursuant to an Indemnification Guarantee in favor of the Purchasers. The Purchasers have no recourse for receivables that are uncollectible as a result of the insolvency or inability to pay of the account debtors. ā The maximum purchase commitment of the Purchasers under the A/R Agreement is $250.0 million. The amount available for sale to the Purchasers under the A/R Agreement fluctuates over time based on the total amount of eligible receivables generated during the normal course of business after excluding excess concentrations and certain other ineligible receivables. As of December 31, 2019, the total amount of eligible receivables available for purchase by the Purchasers was $171.7 million, of which $140.0 million had been sold to the Purchasers. Trade accounts receivable sold by the SPE to the Purchasers are derecognized from our condensed consolidated balance sheet. The fair value of the sold receivables approximated book value due to the short-term nature of the receivables and, as a result, no gain or loss on the sale of the receivables was recorded. Trade receivables pledged by the SPE as collateral to the Purchasers (excluding receivables sold to the Purchasers) totaled $143.6 million as of December 31, 2019 and are included in accounts receivable, net in our condensed consolidated balance sheet. The assets of the SPE cannot be used by the Company for general corporate purposes. Additionally, creditors of the SPE do not have recourse to assets of the Company (other than assets of the SPE). ā |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions | |
Acquisitions | Note 5 Acquisitions ā 2018 Acquisitions ā On October 3, 2018, we purchased PetroMar Technologies, a small developer and operator of LWD downhole tools focusing on high-value formation data to facilitate completion optimization particularly in unconventional reservoirs. The tools complement our existing wellbore placement capabilities and will be included in our Drilling Solutions operating segment. Under the terms of the transaction, we paid an initial purchase price of $25.0 million. We may also be required to make future payments that are contingent upon the future financial performance of this operation. As part of our purchase price allocation, we have recorded intangible assets of $36.2 million ($13.7 million of developed technology, $21.7 million of in process research and development and $0.8 million for tradename), goodwill of approximately $11.4 million and other liabilities of $22.6 million (net of other working capital items) primarily related to the estimate of contingent payments on future financial performance as noted above. The pro forma effect on revenue and net income (loss) have been determined to be immaterial to our financial statements. After further tests, the acquisition is not significant and as such we have not included disclosures of the allocation of the purchase price or any pro forma information. ā 2017 Acquisitions ā Robotic Drilling Systems ā On September 5, 2017 we paid approximately $50.7 million in cash, subject to customary closing adjustments, to acquire Robotic Drilling Systems AS (āRDSā), a provider of automated tubular and tool handling equipment for the onshore and offshore drilling markets based in Stavanger, Norway. This transaction will allow us to integrate RDSās highly capable team and product offering with the technology portfolio of our Rig Technologies segment and strengthens the development of our drilling automation solutions. As part of our purchase price allocation, we have recorded intangible assets of $53.3 million ($20.8 million of developed technology and $32.5 million of in process research and development), goodwill of approximately $5.7 million and other liabilities of $7.3 million (net of other working capital items). The intangible assets related to developed technology are being amortized using the straight-line method over the estimated useful life of 10 years. We have consolidated the operating results of RDS since the acquisition date and reported those results in our Rig Technologies segment. The pro forma effect on revenue and net income (loss) have been determined to be immaterial to our financial statements. Further, tests of significance for this acquisition do not result in a significant acquisition and as such we have not included disclosures of the allocation of the purchase price or any pro forma information. ā Tesco Corporation ā On December 15, 2017, Nabors completed the acquisition of Tesco Corporation (āTescoā). Tescoās tubular services business benefits our Drilling Solutions segment as we expanded into numerous key regions globally. Additionally, the acquisition combined Tescoās rig equipment manufacturing, rental and aftermarket service business into our Rig Technologies segment, creating a leading rig equipment and drilling automation provider. Under the terms of the acquisition, Nabors acquired all common shares of Tesco in an all-stock transaction, with Tesco shareholders receiving 0.68 common shares of Nabors for each Tesco share owned, or approximately 32.1 million Nabors common shares. The fair value of common shares issued was $179.0 million based on the closing price of Nabors common shares as of the last trading day prior to the issuance as stipulated in the acquisition agreement. ā The following table provides the final allocation of the purchase price as of the acquisition date. ā ā ā ā ā ā ā Fair Value (In thousands) ā at Acquisition Assets: ā ā ā ā Cash and cash equivalents ā $ 59,804 ā Accounts receivable ā 40,465 ā Inventory ā 44,525 ā Other current assets ā 13,889 ā Property, plant and equipment ā 68,591 ā Other long-term assets ā 3,647 ā Total assets ā 230,921 ā Liabilities: ā ā ā ā Accounts payable ā $ 14,111 ā Accrued liabilities ā 35,383 ā Other long-term liabilities ā ā 2,436 ā Total liabilities ā 51,930 ā Net assets acquired ā $ 178,991 ā ā We have consolidated the operating results of Tesco since the acquisition date and reported those results in our Drilling Solutions and Rig Technologies segments. We included an additional $7.7 million in operating revenues and $0.1 million in earnings from the acquisition date through December 31, 2017 in our consolidated statements of income (loss) as a result of this acquisition. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | Note 6 Fair Value Measurements ā 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: ā ā Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; ā ā 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 ā ā Level 3 measurements include those that are unobservable and of a subjective nature. ā Our financial assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2019 and 2018 consisted of available-for-sale equity and debt securities. Our debt securities could transfer into or out of a Level 1 or 2 measure depending on the availability of independent and current pricing at the end of each quarter. During 2019, 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. As of December 31, 2019 and 2018, our short-term investments were carried at fair market value and totaled $16.5 million and $34.0 million, respectively, and primarily consisted of Level 1 measurements. No material Level 2 or Level 3 measurements exist as of any of the periods presented. ā ā ā Nonrecurring Fair Value Measurements ā 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 and assets acquired and liabilities assumed in a business combination. Based upon our review of the fair value hierarchy, the inputs used in these fair value measurements were considered Level 3 inputs. ā Fair Value of Financial Instruments ā We estimate the fair value of our financial instruments in accordance with U.S. GAAP. The fair value of our long-term debt and revolving credit facilities is estimated based on quoted market prices or prices quoted from third-party financial institutions, thus a Level 2 measurement. The carrying and fair values of these liabilities were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As of December 31, ā 2019 2018 ā ā Interest ā Carrying Fair ā Interest ā Carrying Fair ā ā Rate ā Value ā Value ā Rate ā Value ā Value ā ā (In thousands) 5.00% senior notes due September 2020 5.44 % $ 282,046 ā $ 284,907 5.25 % $ 614,748 ā $ 590,336 4.625% senior notes due September 2021 4.76 % 634,588 ā 632,516 4.75 % 668,347 ā 603,457 5.50% senior notes due January 2023 5.90 % 501,003 ā 483,834 5.84 % 586,000 ā 465,999 5.10% senior notes due September 2023 5.24 % 336,810 ā 303,860 5.26 % 342,923 ā 262,494 0.75% senior exchangeable notes due January 2024 5.97 % 472,603 ā 431,503 6.04 % 450,689 ā 358,012 5.75% senior notes due February 2025 ā 6.01 % 781,502 ā 705,040 5.87 % 791,502 ā 598,953 2012 Revolving credit facility 3.71 % 355,000 ā 355,000 3.58 % 170,000 ā 170,000 2018 Revolving credit facility ā % ā ā ā ā % ā ā ā Other ā % ā ā ā ā % 561 ā 561 ā ā ā ā ā 3,363,552 ā $ 3,196,661 ā ā ā ā 3,624,770 ā $ 3,049,812 Less: current portion ā ā ā ā ā ā ā ā ā ā ā ā 561 ā ā ā Less: deferred financing costs ā ā ā ā 30,332 ā ā ā ā ā ā ā 38,325 ā ā ā ā ā ā ā $ 3,333,220 ā ā ā ā ā ā $ 3,585,884 ā ā ā ā 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | Note 7 Share-Based Compensation ā Total share-based compensation expense, which includes stock options and restricted shares, was $24.7 million, $26.4 million and $31.9 million for 2019, 2018 and 2017, respectively. Compensation expense related to awards of restricted shares totaled $24.5 million, $26.0 million and $31.4 million for 2019, 2018 and 2017, respectively, which is included in direct costs and general and administrative expenses in our consolidated statements of income (loss). Share-based compensation expense has been allocated to our various reportable segments. See Note 19āSegment Information. ā In addition to the time-based restricted stock share-based awards, historically we have provided two types of performance share awards: the first, based on our performance measured against pre-determined performance metrics (āPerformance Sharesā) and the second, based on market conditions measured against a predetermined peer group (āTSR Sharesā). The performance period for the awards granted in 2019 commenced on January 1, 2018 and ended December 31, 2018. ā Stock Option Plans ā As of December 31, 2019, 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 8.5 million and 15.2 million Nabors common shares remained available for grant as of December 31, 2019 and 2018, respectively. Of the common shares available for grant as of December 31, 2019, approximately 7.7 million of these shares are also available for issuance in the form of restricted shares. ā 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 Naborsā common shares, historical volatility of Naborsā 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. ā Stock option transactions under our various stock-based employee compensation plans are presented below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted- ā ā ā ā ā ā ā Weighted- ā Average ā ā ā ā ā ā ā Average ā Remaining ā Aggregate ā ā ā ā Exercise ā Contractual ā Intrinsic Options Shares Price Term Value ā ā (In thousands, except exercise price) Options outstanding as of December 31, 2018 3,776 ā $ 11.36 ā ā ā ā ā ā ā Granted 138 ā 2.60 ā ā ā ā ā ā ā Exercised ā ā ā ā ā ā ā ā ā ā Surrendered (2,269) ā 9.83 ā ā ā ā ā ā ā Forfeited (15) ā 9.18 ā ā ā ā ā ā ā Options outstanding as of December 31, 2019 1,630 ā $ 12.77 4.37 years ā $ 119 ā Options exercisable as of December 31, 2019 1,630 ā $ 12.77 4.37 years ā $ 119 ā ā During 2019, 2018 and 2017, respectively, we awarded options vesting over periods up to four years to purchase 137,954, 171,124 and 124,271 of our common shares to certain of our directors. ā The fair value of stock options granted during 2019, 2018 and 2017 was calculated using the Black-Scholes option pricing model and the following weighted-average assumptions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 Weighted average fair value of options granted ā $ 1.07 ā $ 1.75 ā $ 2.86 ā Weighted average risk free interest rate ā 1.79% ā 2.59% ā 1.85% ā Dividend yield ā 1.65% ā 3.03% ā 2.94% ā Volatility (1) ā 57.59% ā 57.11% ā 50.82% ā Expected life (in years) ā 4.0 ā 4.0 ā 4.0 ā (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. ā A summary of our unvested stock options as of December 31, 2019, and the changes during the year then ended is presented below: ā ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Unvested Stock Options ā Outstanding ā Value ā ā (In thousands, except fair value) Unvested as of December 31, 2018 17 ā $ 5.21 ā Granted 138 ā 1.07 ā Vested (155) ā 1.53 ā Forfeited ā ā ā ā ā ā Unvested as of December 31, 2019 ā ā $ ā ā ā The total intrinsic value of options exercised during 2017 was $5.1 million. There were no options exercised during 2019 or 2018. The total fair value of options that vested during the years ended December 31, 2019, 2018 and 2017 was $0.2 million, $0.4 million and $0.5 million, respectively. ā Restricted Shares ā 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. ā A summary of our restricted shares as of December 31, 2019, and the changes during the year then ended, is presented below: ā ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Restricted shares ā Outstanding ā Value ā ā (In thousands, except fair value) Unvested as of December 31, 2018 3,612 ā $ 9.16 ā Granted 3,265 ā 3.26 ā Vested (1,444) ā 9.66 ā Forfeited ā (521) ā ā 6.06 ā Unvested as of December 31, 2019 4,912 ā $ 5.42 ā ā During 2019, 2018 and 2017, we awarded 3,264,925, 2,392,486 and 1,130,304 restricted shares, respectively, to our employees and directors. These awards had an aggregate value at their date of grant of $10.6 million, $16.6 million and $14.5 million, respectively, and were scheduled to vest over a period of up to four years. The fair value of restricted shares that vested during 2019, 2018 and 2017 was $4.1 million, $8.7 million and $19.2 million, respectively. ā As of December 31, 2019, there was $17.9 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. ā Restricted Shares Based on Performance Conditions ā During the years ended December 31, 2019, 2018 and 2017, we awarded 2,412,631, 1,009,948 and 461,919 restricted shares, respectively, vesting over a period of three years to some of our executives. The Performance Share awards granted were based upon achievement of specific financial or operational objectives. The number of shares granted was determined by the percentage of performance goals achieved during fiscal years 2018, 2017 and 2016, respectively. These awards had an aggregate fair value at their date of grant of $7.5 million, $7.0 million and $7.1 million, respectively. ā The following table sets forth information regarding outstanding restricted shares based on performance conditions as of December 31, 2019: ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Performance based restricted shares ā Outstanding ā Value ā ā (In thousands, except fair value) Outstanding as of December 31, 2018 ā 1,746 ā $ 9.35 Granted 2,413 ā 3.10 Vested (919) ā 10.15 Outstanding as of December 31, 2019 3,240 ā $ 4.47 ā Until shares are granted, our Performance Share awards are liability-classified awards. Our accrued liabilities included $2.4 million for such awards at December 31, 2019 for the performance period beginning January 1, 2019 through December 31, 2019 and $2.2 million for such awards at December 31, 2018 for the performance period beginning January 1, 2018 through December 31, 2018. The fair value of these awards that vested during the years ended December 31, 2019, 2018 and 2017 was $2.5 million, $4.8 million and $7.1 million, respectively. The fair value of these liability-classified awards are estimated at each reporting period, based on internal metrics and marked to market. ā Restricted Shares Based on Market Conditions ā During 2019, 2018 and 2017, we granted awards for 2,609,561, 1,058,158 and 397,692 TSR 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 $3.7 million, $5.1 million and $4.4 million, respectively, after consideration of all assumptions. ā The grant date fair value of these awards was based on a Monte Carlo model, using the following assumptions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā 2019 2018 2017 ā ā ā ā ā ā ā ā ā ā Risk free interest rate ā ā 2.48% ā ā 2.02% ā ā 1.62% ā Expected volatility ā ā 70.00% ā ā 57.00% ā ā 55.00% ā Closing stock price at grant date ā $ 2.19 ā $ 6.87 ā $ 16.81 ā Expected term (in years) ā ā 3.0 ā ā 3.0 ā 3.0 ā ā The following table sets forth information regarding outstanding restricted shares based on market conditions as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Market based restricted shares ā Outstanding ā Value ā ā (In thousands, except fair value) Outstanding as of December 31, 2018 ā 1,357 ā $ 7.09 Granted 2,610 ā 1.42 ā Vested (188) ā 5.58 ā Forfeited ā (562) ā ā 5.58 ā Outstanding as of December 31, 2019 3,217 ā $ 2.84 ā ā As of December 31, 2019, there was $4.2 million of total future compensation cost related to unvested TSR Share awards that are expected to vest. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 8 Property, Plant and Equipment ā The major components of our property, plant and equipment are as follows: ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Land ā $ 33,931 ā $ 43,187 ā Buildings ā 132,603 ā 123,619 ā Drilling rigs and related equipment ā 12,948,504 ā 13,021,580 ā Oilfield hauling and mobile equipment ā 270,826 ā 267,223 ā Other machinery and equipment ā 192,081 ā 197,094 ā Oil and gas properties ā ā 12,286 ā ā 12,286 ā Construction-in-process (1) ā 25,391 ā 30,395 ā ā ā $ 13,615,622 ā $ 13,695,384 ā Less: accumulated depreciation and amortization ā (8,685,073) ā (8,227,514) ā ā ā $ 4,930,549 ā $ 5,467,870 ā (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, 2019 or 2018. ā Depreciation expense included in depreciation and amortization expense in our consolidated statements of income (loss) totaled $869.6 million, $860.6 million and $835.9 million during 2019, 2018 and 2017, respectively. ā Repair and maintenance expense included in direct costs in our consolidated statements of income (loss) totaled $248.6 million, $265.6 million and $241.4 million during 2019, 2018 and 2017, respectively. ā Interest costs of $1.5 million, $1.0 million and $2.5 million were capitalized during 2019, 2018 and 2017, respectively. |
Financial Instruments and Risk
Financial Instruments and Risk Concentration | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Risk Concentration | |
Financial Instruments and Risk Concentration | Note 9 Financial Instruments and Risk Concentration ā 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. ā Foreign Currency Risk ā 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. ā 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. ā Credit Risk ā 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 managementās expectations. ā Interest Rate and Marketable and Non-marketable Security Price Risk ā Our financial instruments that are potentially sensitive to changes in interest rates include our floating rate debt instruments comprised of our revolving credit facilities and our fixed rate debt securities comprised of our 5.0%, 4.625%, 5.50%, 5.10% and 5.75% senior notes. ā 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. ā |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Debt | Note 10 Debt ā Debt consisted of the following: ā ā ā ā ā ā ā ā ā ā ā As of December 31, ā 2019 2018 ā ā (In thousands) 5.00% senior notes due September 2020 (1) ā $ 282,046 ā $ 614,748 ā 4.625% senior notes due September 2021 ā 634,588 ā 668,347 ā 5.50% senior notes due January 2023 ā 501,003 ā 586,000 ā 5.10% senior notes due September 2023 ā 336,810 ā 342,923 ā 0.75% senior exchangeable notes due January 2024 ā 472,603 ā 450,689 ā 5.75% senior notes due February 2025 ā ā 781,502 ā 791,502 ā 2012 Revolving credit facility (1) ā 355,000 ā ā 170,000 ā 2018 Revolving credit facility ā ā ā ā ā ā Other ā ā ā ā 561 ā ā ā ā 3,363,552 ā ā 3,624,770 ā Less: current portion ā ā ā 561 ā Less: deferred financing costs ā ā 30,332 ā ā 38,325 ā ā ā $ 3,333,220 ā $ 3,585,884 ā ā (1) The 5.00% senior notes due September 2020 and 2012 Revolving Credit Facility have been classified as long-term because we have the ability and intent to repay this obligation utilizing our 2018 Revolving Credit Facility. ā As of December 31, 2019, the principal amount and maturities of our primary debt for each of the five years after 2019 and thereafter are as follows: ā ā ā ā ā ā ā Paid at Maturity ā ā (In thousands) 2020 ā $ 637,162 (1) 2021 ā 634,999 (2) 2022 ā ā ā 2023 ā 838,281 (3) 2024 ā 575,000 (4) Thereafter ā 781,502 (5) ā ā $ 3,466,944 ā (1) Represents our 5.00% senior notes due September 2020 and amounts outstanding under our 2012 Revolving Credit Facility due July 2020. Subsequent to the balance sheet through the date of this report, approximately $3.0 million aggregate principal amount of our 5.00% senior notes were repurchased in the open market, aside from the tender offer. ā (2) Represents our 4.625% senior notes due September 2021. Approximately $379.7 million aggregate principal amount of our 4.625% senior notes were tendered pursuant to the previously announced offer to purchase and consent solicitation during January 2020 and approximately $5.0 million aggregate principal amount were repurchased in the open market, aside from the tender offer. ā (3) Represents our 5.50% senior notes due January 2023 and 5.10% senior notes due September 2023. Approximately $407.7 million aggregate principal amount of our 5.50% senior notes and $165.5 million aggregate principal amount of our 5.10% senior notes were tendered pursuant to the previously announced offer to purchase and consent solicitation during January 2020. Subsequent to the balance sheet through the date of this report, approximately $9.0 million aggregate principal amount of our 5.50% senior notes and $4.2 million aggregate principal amount of our 5.10% senior notes were repurchased in the open market. ā (4) Represents our 0.75% senior exchangeable notes due January 2024. ā (5) Represents our 5.75% senior notes due February 2025. ā Nabors Delawareās various fixed rate debt securities comprised of our 5.00%, 4.625%, 5.50% and 5.10% and 5.75% senior unsecured notes are fully and unconditionally guaranteed by us. The notes rank equal in right of payment to all of Nabors Delawareās existing and future senior unsubordinated debt. The notes rank senior in right of payment to all of Nabors Delawareās 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 generally 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. The notes have customary covenants, including limitations on the incurrence of liens and entering into sale and leaseback transactions as well as customary events of default. ā During 2019, 2018 and 2017, we repurchased $468.3 million, $873.0 million, and $367.9 million aggregate principal amount of our senior unsecured notes for approximately $461.1 million, $906.5 million and $381.7 million, respectively, in cash, reflecting principal, accrued and unpaid interest. In connection with such repurchases, during 2019 we recognized a net gain of approximately $11.5 million. During 2018 and 2017 we recognized net losses of approximately $5.3 million and $16.0 million, respectively, which represents the premiums paid in connection with these repurchases or redemptions. These amounts are included in impairments and other charges in our consolidated statement of income (loss). ā In January 2020, Nabors completed a private placement offering of $600.0 million aggregate principal amount of senior guaranteed notes due 2026 (the ā2026 Notesā) and $400.0 million in aggregate principal amount of senior guaranteed notes due 2028 (the ā2028 Notesā and, together with the 2026 Notes, the ānotesā). The 2026 and 2028 Notes will bear interest at an annual rate of 7.25% and 7.50%, respectively. The notes are fully and unconditionally guaranteed by certain of Naborsā indirect wholly-owned subsidiaries. The proceeds from this offering were used primarily to repurchase $952.9 million aggregate principal amount, for a net premium of $2.7 million (excluding accrued interest) certain of Nabors Delawareās senior notes that were tendered pursuant to the previously announced offer to purchase and consent solicitation. The aggregate principal amount repurchased included approximately $407.7 million of our 5.50% senior notes due 2023, $379.7 million of our 4.625% senior notes due 2021 and $165.5 million of our 5.10% senior notes due 2023. The remaining proceeds were used to pay for transactional fees and for general corporate purposes, including the repayment of other debt. We also repurchased in the open market, aside from the tender offer, approximately $21.2 million aggregate principal amount of our various senior notes. ā 0.75% Senior Exchangeable Notes Due January 2024 ā In January 2017, Nabors Delaware issued $575.0 million in aggregate principal amount of 0.75% exchangeable senior unsecured notes due 2024, which are fully and unconditionally guaranteed by Nabors. The notes bear interest at a rate of 0.75% per year payable semiannually on January 15 and July 15 of each year, beginning on July 15, 2017. The exchangeable notes are bifurcated for accounting purposes into debt and equity components of $411.2 million and $163.8 million, respectively, based on the relative fair value at the issuance date. Debt issuance costs of $9.6 million and equity issuance costs of $3.9 million were capitalized in connection with the issuance of these notes in long-term debt and netted against the proceeds allocated to the equity component, respectively, in our consolidated balance sheet. The debt issuance costs are being amortized through January 2024. ā The exchangeable notes are exchangeable, under certain conditions, at an initial exchange rate of 39.75 common shares of Nabors per $1,000 principal amount of exchangeable 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 Nabors, or a combination of cash and common shares, at our election. ā In connection with the pricing of the notes, we entered into privately negotiated capped call transactions which are expected to reduce potential dilution to common shares and/or offset potential cash payments required to be made in excess of the principal amount upon any exchange of 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 share price of $17.97 as of the pricing date of the transaction. The capped call meets the definition of a derivative under ASC 815, Derivatives and Hedging, as it has an underlying (the Companyās share price), a notional amount (the number of underlying shares to be purchased per option), an initial net investment less (by more than a nominal amount) than the amount that would have to be paid to own the underlying and provides for a default net share settlement (but could also be settled in cash at the election of the Company). However, the capped call meets the derivative scope exception under ASC 815 for instruments indexed to the Companyās own stock and classified in shareholdersā equity and therefore was initially recorded in equity. Until such time as the Company elects a settlement method for the exchangeable notes, the capped call transaction will continue to be accounted for as equity. At conversion, if the Company elects to partially settle the notes in cash in excess of the principal amount, or fully in cash, the capped call will be subject to mark to market through earnings as a derivative until such settlement is paid. ā The net proceeds from the offering of the exchangeable notes were used to prepay the remaining balance of our unsecured term loan originally scheduled to mature in 2020, as well as to pay the cost of the capped call transactions. The remaining net proceeds from the offering were allocated for general corporate purposes, including to repurchase or repay other indebtedness. ā 2018 Revolving Credit Facility ā On December 13, 2019, Nabors Delaware and Nabors Drilling Canada Limited (āāNabors Canadaāā and together with Nabors Delaware, the āāBorrowersāā) entered into Amendment No. 2 (the āāSecond Amendmentāā) to the existing credit agreement dated October 11, 2018 (as amended, including such amendment, the ā2018 Revolving Credit Facilityā) by and among the Borrowers, the Guarantors identified therein, HSBC Bank Canada, as the Canadian lender (the āāCanadian Lenderāā) the issuing banks and other lenders party thereto (the āāUS Lendersāā and, together with the Canadian Lender, the āāLendersāā) and Citibank, N.A., as administrative agent solely for the U.S. Lenders. Changes to the 2018 Credit Agreement resulting from the Second Amendment include, without limitation, the following: ā ā Reduction of commitments of the US Lenders to $981.6 million and the commitment of the Canadian Lender to $32.0 million; ā Replacement of the net debt/capitalization covenant with a covenant to maintain net funded debt at no greater than 5.5 x EBITDA (as defined in the Second Amendment); ā Maintaining the asset coverage ratio; provided that such ratio is measured only against the commitments under the 2018 Credit Agreement, plus debt incurred under the $100.0 million general indebtedness basket; ā Reductions of $50.0 million to each of the general lien and general indebtedness baskets; ā Addition of ability to incur upstream structurally-subordinated guaranteed indebtedness, subject to financial covenants; ā Addition of ability to repay up to $150.0 million of Nabors Delawareās notes due February 2025, subject to satisfaction of certain conditions; and ā Addition of cure provisions ā The 2018 Revolving Credit Facility has a borrowing capacity of $1.0136 billion and is fully and unconditionally guaranteed by Nabors and certain of its wholly owned subsidiaries. The 2018 Revolving Credit Facility matures at the earlier of (a) October 11, 2023 or (b) July 19, 2022, if any of Nabors Delawareās existing 5.50% senior notes due January 2023 remain outstanding as of such date. Certain lenders have committed to provide Nabors Delaware an aggregate principal amount of $981.6 million under the 2018 Revolving Credit Facility, which may be drawn in U.S. dollars, and HSBC Bank Canada has committed to provide Nabors Canada an aggregate principal amount of $32 million in U.S. dollar equivalent, which can be drawn upon in either U.S. or Canadian dollars. The 2018 Revolving Credit Facility contains certain affirmative and negative covenants, including a financial covenant requiring Nabors to maintain a net funded debt to EBITDA (as defined in the Second Amendment) at no greater than 5.5 times EBITDA. Additionally, during any period in which Nabors Delaware fails to maintain an investment grade rating from at least two ratings agencies, the guarantors under the facility and their respective subsidiaries will be required to maintain an asset to debt coverage ratio (as defined in the 2018 Revolving Credit Facility) of at least 2.50:1. As of the date of this report, we had no borrowings outstanding under our 2018 Revolving Credit Facility. In order to make any future borrowings under the 2018 Revolving Credit Facility, Nabors and certain of its wholly owned subsidiaries are subject to compliance with the conditions and covenants contained therein, including compliance with applicable financial ratios. ā As of the date of this report, we were in compliance with all covenants under the 2018 Revolving Credit Facility. If we fail to perform our obligations under the covenants, including financial covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facilities could be declared immediately due and payable. We expect to remain in compliance with all covenants under the 2018 Revolving Credit Facility during the twelve month period following the date of this report based on our current operational and financial projections. However, we can make no assurance of continued compliance if our current projections or material underlying assumptions prove to be incorrect. If we fail to comply with the covenants, the revolving credit commitment could be terminated, and any outstanding borrowings under the facility could be declared immediately due and payable. ā 2012 Revolving Credit Facility ā On October 11, 2018, Nabors Delaware entered into Amendment No. 3 to its existing credit agreement dated November 29, 2012 (as amended, including such amendment, the ā2012 Revolving Credit Facilityā), among itself, Nabors, Nabors Canada, HSBC Bank Canada, the other lenders party thereto, Citibank, N.A., and Wilmington Trust, National Association, as successor administrative agent (the āAmendmentā). The Amendment, among other things, provides for Citibank, N.A.ās resignation as administrative agent and the appointment of Wilmington Trust, National Association as administrative agent, reduces the overall commitments available to $666.25 million and provides for certain lenders to exit the facility in order to become lenders under the 2018 Revolving Credit Facility. As of December 31, 2019, we had $355.0 million in borrowings outstanding under this facility. The weighted average interest rate on borrowings during the year ended December 31, 2019 was 3.71%. Availability under the 2012 Revolving Credit Facility is subject to a covenant not to exceed a net funded debt to capital ratio of 0.60:1. As of December 31, 2019 our net funded debt to capital ratio was 0.59:1. The 2012 Revolving Credit Facility expires in July 2020, or if we fail to comply with the net funded debt to capital covenant, the 2012 Revolving Credit Facility could be terminated earlier than July 2020. However, at such time as the 2012 Revolving Credit Facility becomes unavailable, we have the ability and intent to refinance the outstanding balance utilizing the 2018 Revolving Credit Facility, which has approximately $1.0 billion of available capacity as of December 31, 2019. ā Short-Term Borrowings ā We had 18 letter-of-credit facilities with various banks as of December 31, 2019. Availability and borrowings under our letter-of-credit facilities are as follows: ā ā ā ā ā ā ā December 31, ā ā 2019 ā ā (In thousands) Credit available ā $ 890,902 ā Less: Letters of credit outstanding, inclusive of financial and performance guarantees ā 146,788 ā Remaining availability ā $ 744,114 ā ā |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 11 Income Taxes ā Income (loss) from continuing operations before income taxes consisted of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, United States and Other Jurisdictions 2019 2018 2017 ā ā (In thousands) United States ā $ 5,979 ā $ (119,419) ā $ (369,162) ā Other jurisdictions ā (594,901) ā (399,375) ā (210,922) ā Income (loss) from continuing operations before income taxes ā $ (588,922) ā $ (518,794) ā $ (580,084) ā ā Income tax expense (benefit) from continuing operations consisted of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā ā ā ā ā ā ā ā ā (In thousands) Current: ā ā ā ā ā ā ā ā ā ā U.S. federal ā $ 1,210 ā $ (32,351) ā $ (160,761) ā Outside the U.S. ā 54,097 ā 32,928 ā 59,491 ā State ā 318 ā 1,811 ā (810) ā ā ā $ 55,625 ā $ 2,388 ā $ (102,080) ā Deferred: ā ā ā ā ā ā ā ā ā ā U.S. federal ā $ 58,157 ā $ 37,476 ā $ 49,020 ā Outside the U.S. ā (25,428) ā 39,518 ā (26,684) ā State ā 3,222 ā (113) ā (3,226) ā ā ā $ 35,951 ā $ 76,881 ā $ 19,110 ā Income tax expense (benefit) ā $ 91,576 ā $ 79,269 ā $ (82,970) ā ā A reconciliation of our statutory tax rate to our worldwide effective tax rate consists of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Income tax provision at statutory (Bermuda rate of 0%) ā $ ā ā $ ā ā $ ā ā Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate ā 54,060 ā 49,375 ā (98,119) ā Increase (decrease) in valuation allowance ā 32,869 ā 38,822 ā 29,165 ā Impact of Tax Reform Act ā ā ā ā ā 138,635 ā Tax reserves and interest ā ā 1,107 ā ā (10,626) ā ā (148,615) ā State income taxes (benefit) ā 3,540 ā 1,698 ā (4,036) ā Income tax expense (benefit) ā $ 91,576 ā $ 79,269 ā $ (82,970) ā Effective tax rate ā (15.5%) ā (15.3%) ā 14.3% ā ā The increase in tax expense during 2019 compared to 2018 was primarily attributable to the change in our geographic mix of pre-tax earnings (losses). The ratio of pre-tax earnings in certain high tax jurisdictions compared to low or zero tax jurisdictions increased in 2019 compared to 2018, resulting in an increase in income tax expense. This increase was partially offset by certain discrete items. During 2019, we recognized a $29.6 million tax benefit from the release of a valuation allowance in one of our foreign jurisdictions related to net operating loss carryforwards. This was partially offset by a $14.4 million settlement of a tax dispute in one of our foreign jurisdictions. During 2018, we recognized a non-cash expense of $52.0 million to reflect a valuation allowance on deferred tax assets in Canada. ā The components of our net deferred taxes consisted of the following: ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Deferred tax assets: ā ā ā ā ā ā ā Net operating loss carryforwards ā $ 2,834,851 ā $ 1,967,910 ā Equity compensation ā 6,577 ā 7,038 ā Deferred revenue ā 8,873 ā 16,494 ā Tax credit and other attribute carryforwards ā 97,215 ā 100,752 ā Insurance loss reserves ā 2,248 ā 2,451 ā Accrued interest ā 172,120 ā 206,088 ā Other ā 95,588 ā 82,167 ā Subtotal ā 3,217,472 ā 2,382,900 ā Valuation allowance ā (2,813,567) ā (1,917,390) ā Deferred tax assets: ā $ 403,905 ā $ 465,510 ā Deferred tax liabilities: ā ā ā ā ā ā ā Depreciation and amortization for tax in excess of book expense ā $ 80,155 ā $ 102,810 ā Other ā 21,055 ā 23,920 ā Deferred tax liability ā $ 101,210 ā $ 126,730 ā Net deferred tax assets (liabilities) ā $ 302,695 ā $ 338,780 ā Balance Sheet Summary: ā ā ā ā ā ā ā Net noncurrent deferred tax asset ā $ 305,844 ā $ 345,091 ā Net noncurrent deferred tax liability ā (3,149) ā (6,311) ā Net deferred tax asset (liability) ā $ 302,695 ā $ 338,780 ā ā As of December 31, 2019 we had federal, state, and foreign net operating loss (āNOLā) carryforwards of approximately $418.3 million, $1.1 billion and 10.9 billion, respectively. Of those amounts, $3.7 billion will expire between 2020 and 2040 if not utilized. 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. A valuation allowance of approximately $2.6 billion has been recognized related to certain NOL carryforwards as we believe it is more likely than not that the benefit of these NOL carryforwards will not be realized. ā The following is a reconciliation of our uncertain tax positions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 2017 ā ā (In thousands) Balance as of January 1 ā $ 25,711 ā ā $ 33,203 ā $ 179,255 ā Additions based on tax positions related to the current year ā ā ā ā ā ā ā ā Additions for tax positions of prior years ā 1,003 ā ā 308 ā 25,119 ā Reductions for tax positions for prior years ā (860) ā ā (7,800) ā (171,171) ā Settlements ā ā (84) ā ā ā ā ā ā ā ā Balance as of December 31 ā $ 25,770 ā ā $ 25,711 ā $ 33,203 ā ā If the unrecognized tax benefits of $25.7 million are realized, this would favorably impact the worldwide effective tax rate. As of December 31, 2019, 2018 and 2017, we had approximately $7.7 million, $6.7 million and $9.7 million, respectively, of interest and penalties related to uncertain tax positions. During 2019, 2018 and 2017, we accrued and recognized estimated interest and penalties related to uncertain tax positions of approximately $0.8 million, $1.0 million and $0.5 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). ā 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. ā 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 2016 and non-U.S. income tax examinations for years before 2007. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | Note 12 Shareholdersā Equity ā Common shares ā Our authorized share capital consists of 825.0 million shares of which 800.0 million are common shares, par value $0.001 per share, and 25.0 million are preferred shares, par value $0.001 per share. 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. ā During 2018, we issued 40.25 million of our common shares at a price to the public of $7.75 per share. Nabors received aggregate net proceeds of approximately $301.4 million after deducting underwriting discounts, commissions and offering expenses. ā During 2017, with approval of the Board, we repurchased 3.1 million of our common shares in the open market for $18.1 million, all of which are held by our subsidiaries, and which are accounted for as treasury shares. ā 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 2019, 2018 or 2017. ā On February 20, 2020, a cash dividend of $0.01 per share was declared for shareholders of record on March 12, 2020 and will be paid on April 2, 2020. ā Convertible Preferred Shares During 2018, we issued 5.75 million (including the underwriters option for .75 million) of our 6% Series A Mandatory Convertible Preferred Shares (the āmandatory convertible preferred sharesā), par value $.001 per share, with a liquidation preference of $50 per share. Nabors received aggregate net proceeds of approximately $277.9 million after deducting underwriting discounts, commissions and offering expenses. During 2019, we repurchased 136,772 of our mandatory convertible preferred shares for approximately $2.9 million. The dividends on the mandatory convertible preferred shares are payable on a cumulative basis at a rate of 6% annually on the initial liquidation preference of $50 per share. Dividends accumulate and are paid quarterly to the extent that we have available funds and our Board of Directors declares a dividend payable. We may elect to pay any accumulated and unpaid dividends in cash or common shares or any combination thereof. At issuance, each mandatory convertible preferred share was automatically convertible into between 5.3763 and 6.4516 of our common shares based on the average share price over a period of twenty consecutive trading days ending prior to May 1, 2021, subject to anti-dilution adjustments. As a result of the dividends paid on our common shares since the offering, the conversion rate for each mandatory convertible preferred share has been adjusted to between 5.6751 and 6.8102 of our common shares. At any time prior to May 1, 2021, a holder of mandatory convertible preferred shares may convert such mandatory convertible preferred shares into our common shares at the minimum conversion rate, subject to adjustment. On February 20, 2020, a cash dividend of $0.75 per mandatory convertible preferred share was declared for shareholders of record on April 15, 2020 and will be paid on May 1, 2020. ā |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2019 | |
Joint Ventures | |
Joint Ventures | Note 13 Joint Ventures ā During 2016, we entered into an agreement with Saudi Aramco, to form a new joint venture, SANAD, to own, manage and operate onshore drilling rigs in the Kingdom of Saudi Arabia. SANAD, which is equally owned by Saudi Aramco and Nabors, began operations during the fourth quarter of 2017. ā During 2017, Nabors and Saudi Aramco each contributed $20 million in cash for the purpose of capitalizing the joint venture upon formation. In addition, since inception Nabors and Saudi Aramco have each contributed a combination of drilling rigs, drilling rig equipment and other assets, including cash, each with a value of approximately ā The condensed balance sheet of SANAD, as included in our consolidated balance sheet, is presented below. ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Assets: ā ā ā ā ā ā ā Cash and cash equivalents ā $ 289,575 ā $ 211,618 ā Accounts receivable ā 68,624 ā 73,699 ā Other current assets ā 18,149 ā 17,198 ā Property, plant and equipment, net ā 455,751 ā 457,963 ā Other long-term assets ā 15,118 ā 36,583 ā Total assets ā $ 847,217 ā $ 797,061 ā Liabilities: ā ā ā ā ā ā ā Accounts payable ā $ 64,365 ā $ 60,087 ā Accrued liabilities ā 17,929 ā 8,530 ā Total liabilities ā $ 82,294 ā $ 68,617 ā ā |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related-Party Transactions | |
Related-Party Transactions | Note 14 Related-Party Transactions ā 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 $5.5 million is included in other long-term assets in our consolidated balance sheets as of December 31, 2019 and 2018. ā 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. ā 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. During 2017, our joint venture with Saudi Aramco, SANAD, began operations. As such, we have included transactions with Saudi Aramco effective as of the commencement of operations of SANAD. See Note 13 ā Joint Ventures. Revenues from business transactions with these affiliated entities totaled ā In addition, Mr. Crane, one of our independent directors, is Chairman and Chief Executive Officer of Crane Capital Group Inc. (āCCGā), 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 2019, 2018 and 2017, we made payments for these services of $18.9 million, $19.9 million and $14.6 million, respectively. We had accounts payable to these CCG-related companies of $2.4 million and $0.8 million as of December 31, 2019 and 2018. ā |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 Commitments and Contingencies ā Commitments ā Under the joint venture agreement with Saudi Aramco, the agreement requires us to backstop our share of the joint ventureās 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. ā Leases Nabors and its subsidiaries occupy various facilities and lease certain equipment under various lease agreements. Rental expense relating to operating leases with terms greater than 30 days amounted to $15.9 million, $18.7 million and $15.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 21 ā Leases for more information on the minimum rental commitments under non-cancelable operating leases. ā Contingencies ā Income Tax Contingencies We operate in a number of countries 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. ā 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. ā In March 2011, the Court of Ouargla entered a judgment of approximately $23.7 million (at December 31, 2019 exchange rates) against us relating to alleged violations of Algeriaās 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 courtās 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 Courtās 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 $15.7 million in excess of amounts accrued. ā On September 29, 2017, we were sued, along with Tesco Corporation and its Board of Directors, in a putative shareholder class action filed in the United States District Court for the Southern District of Texas, Houston Division. The plaintiff alleges that the September 18, 2017 Preliminary Proxy Statement filed by Tesco with the United States Securities and Exchange Commission omitted material information with respect to the proposed transaction between Tesco and Nabors announced on August 14, 2017. The plaintiff claims that the omissions rendered the Proxy Statement false and misleading, constituting a violation of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934. The court consolidated several matters and entered a lead plaintiff appointment order. The plaintiff filed their amended complaint, adding Nabors Industries Ltd. as a party to the consolidated action. Nabors filed its motion to dismiss, which was granted by the court on March 29, 2019. The parties have filed appellate briefs with the Fifth Circuit Court of Appeals, and arguments have been set for March 4, 2020. Nabors will continue to vigorously defend itself against the allegations. ā Following a routine audit conducted in May and June of 2018 by the Atyrau Oblast Ecology Department (the āAOEDā), our joint venture in Kazakhstan, KMG Nabors Drilling Company (āKNDCā), was administratively fined for not having emissions permits for KNDC owned or leased equipment. Prior to this audit, the AOED had always accepted the operatorās permits for all of their subcontractors. However, because of major personnel changes, AOED changed this position and is now requiring that the owner/lessor of the equipment that emits the pollutants must have its own permits. Administrative fines has been issued to KNDC and paid in the amount of million. In furtherance of this position, KNDC and the operator have executed an agreement formalizing the operatorās obligation to reimburse KNDC for all financial expenses related to this case. ā Off-Balance Sheet Arrangements (Including Guarantees) ā We are a party to some transactions, agreements or other contractual arrangements defined as āoff-balance sheet arrangementsā 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 include the A/R Agreement (see Note 4āAccounts Receivable Sales Agreement) and certain agreements and obligations under which we provide financial or performance assurance to third parties. Certain of these financial or performance assurances serve as guarantees, including standby letters of credit issued on behalf of insurance carriers in conjunction with our workersā 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. ā 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: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Maximum Amount ā 2020 2021 2022 Thereafter Total ā ā (In thousands) Financial standby letters of credit and other financial surety instruments ā $ 216,053 3,690 ā ā ā $ 219,743 ā ā |
Earnings (Losses) Per Share
Earnings (Losses) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Losses) Per Share | |
Earnings (Losses) Per Share | Note 16 Earnings (Losses) Per Share ā ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have nonforfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings (losses) per share. We have granted and expect to continue to grant to employees restricted stock grants that contain nonforfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings (losses) per share and calculate basic earnings (losses) per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The participating security holders are not contractually obligated to share in losses. Therefore, losses are not allocated to the participating security holders. ā 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. ā 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. Shares issuable upon exchange of the $575.0 million 0.75% exchangeable notes are not included in the calculation of diluted earnings (losses) per share unless the exchange value of the notes exceeds their principal amount at the end of the relevant reporting period, in which case the notes will be accounted for as if the number of common shares that would be necessary to settle the excess are issued. Such shares are only included in the calculation of the weighted-average number of shares outstanding in our diluted earnings (losses) per share calculation, when the price of our shares exceeds $25.16 on the last trading day of the quarter, which did not occur during the year ended December 31, 2019. ā ā A reconciliation of the numerators and denominators of the basic and diluted earnings (losses) per share computations is as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands, except per share amounts) BASIC EPS: ā ā ā ā ā ā ā ā ā ā ā ā Net income (loss) (numerator): ā ā ā ā ā ā ā ā ā ā ā ā Income (loss) from continuing operations, net of tax ā ā ā $ (680,498) ā $ (598,063) ā $ (497,114) ā Less: net (income) loss attributable to noncontrolling interest ā ā ā (22,375) ā (28,222) ā (6,178) ā Less: preferred stock dividends ā ā ā (17,244) ā (12,305) ā ā ā Less: accrued distribution on redeemable noncontrolling interest in subsidiary ā ā ā ā (20,534) ā ā (11,098) ā ā ā ā Less: distributed and undistributed earnings allocated to unvested shareholders ā ā ā ā (459) ā ā (1,819) ā ā 13,210 ā Numerator for basic earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā Adjusted income (loss) from continuing operations, net of tax - basic ā ā ā $ (741,110) ā $ (651,507) ā $ (490,082) ā Income (loss) from discontinued operations, net of tax ā ā ā $ (12) ā $ (14,663) ā $ (43,519) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares outstanding - basic ā ā ā 351,617 ā 334,397 ā 280,653 ā Earnings (losses) per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic from continuing operations ā ā ā $ (2.11) ā $ (1.95) ā $ (1.75) ā Basic from discontinued operations ā ā ā ā ā (0.04) ā (0.15) ā Total Basic ā ā ā $ (2.11) ā $ (1.99) ā $ (1.90) ā DILUTED EPS: ā ā ā ā ā ā ā ā ā ā ā ā Adjusted income (loss) from continuing operations, net of tax - basic ā ā ā $ (741,110) ā $ (651,507) ā $ (490,082) ā Add: effect of reallocating undistributed earnings of unvested shareholders ā ā ā ā ā ā ā ā ā ā ā ā Adjusted income (loss) from continuing operations, net of tax - diluted ā ā ā $ (741,110) ā $ (651,507) ā $ (490,082) ā Income (loss) from discontinued operations, net of tax ā ā ā $ (12) ā $ (14,663) ā $ (43,519) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares outstanding - basic ā ā ā 351,617 ā 334,397 ā 280,653 ā Add: dilutive effect of potential common shares ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares outstanding - diluted ā ā ā ā 351,617 ā ā 334,397 ā ā 280,653 ā Earnings (losses) per share: ā ā ā ā ā ā ā ā ā ā ā ā Diluted from continuing operations ā ā ā $ (2.11) ā $ (1.95) ā $ (1.75) ā Diluted from discontinued operations ā ā ā ā ā (0.04) ā (0.15) ā Total Diluted ā ā ā $ (2.11) ā $ (1.99) ā $ (1.90) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā For all periods presented, the computation of diluted earnings (losses) per Naborsā share excludes outstanding stock options with exercise prices greater than the average market price of Naborsā 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: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) ā ā ā ā ā ā ā ā ā ā ā ā Potentially dilutive securities excluded as anti-dilutive ā ā ā ā 1,994 ā ā 4,341 ā ā 4,534 ā In any period during which the average market price of Naborsā 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. ā Additionally, we excluded 39.2 million common shares from the computation of diluted shares issuable upon the conversion of mandatory convertible preferred shares, because their effect would be anti-dilutive under the if-converted method. |
Supplemental Balance Sheet, Inc
Supplemental Balance Sheet, Income Statement and Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | Note 17 Supplemental Balance Sheet, Income Statement and Cash Flow Information ā Accrued liabilities include the following: ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Accrued compensation ā $ 97,003 ā $ 92,358 ā Deferred revenue and proceeds on insurance and asset sales ā 89,051 ā ā 149,266 ā Other taxes payable ā 31,472 ā ā 33,199 ā Workersā compensation liabilities ā 30,214 ā 16,316 ā Interest payable ā 51,316 ā 59,718 ā Litigation reserves ā 14,736 ā 24,926 ā Current liability to discontinued operations ā ā ā 2,445 ā Dividends declared and payable ā 7,832 ā 25,330 ā Other accrued liabilities ā 11,658 ā 14,354 ā ā ā $ 333,282 ā $ 417,912 ā ā Investment income (loss) includes the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā 2019 2018 2017 ā (In thousands) ā Interest and dividend income ā ā $ 8,424 ā $ 4,957 ā $ 2,227 ā Gains (losses) on marketable securities ā ā 1,794 ā (14,456) ā (1,033) ā ā ā ā $ 10,218 ā $ (9,499) ā $ 1,194 ā ā Other, net includes the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) ā Losses (gains) on sales, disposals and involuntary conversions of long-lived assets ā ā ā $ 7,141 ā $ 11,789 ā $ 19,026 ā Litigation expenses and reserves ā ā ā 5,226 ā ā 9,939 ā ā 1,273 ā Foreign currency transaction losses (gains) ā ā ā 20,929 ā ā 4,156 ā ā 1,603 ā Other losses (gains) ā ā ā (72) ā ā 3,648 ā ā (7,022) ā ā ā ā ā $ 33,224 ā $ 29,532 ā $ 14,880 ā ā The changes in accumulated other comprehensive income (loss), by component, include the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gains ā gains (losses) ā Defined ā ā ā ā ā ā ā ā (losses) on ā on available- ā benefit ā Foreign ā ā ā ā ā cash flow ā for-sale ā pension plan ā currency ā ā ā ā hedges securities items items Total ā ā (In thousands (1) ) As of January 1, 2018 ā $ (922) ā $ 9,144 ā $ (4,111) ā $ 7,074 ā $ 11,185 ā Other comprehensive income (loss) before reclassifications ā ā ā ā ā ā ā ā ā ā (31,962) ā ā (31,962) ā Amounts reclassified from accumulated other comprehensive income (loss) ā 430 ā ā ā ā ā 166 ā ā ā ā ā 596 ā Adoption of ASU No. 2016-01 ā ā ā (9,144) ā ā ā ā ā (9,144) ā Net other comprehensive income (loss) ā 430 ā (9,144) ā 166 ā (31,962) ā (40,510) ā As of December 31, 2018 ā $ (492) ā $ ā ā $ (3,945) ā $ (24,888) ā $ (29,325) ā (1) All amounts are net of tax. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gains ā gains (losses) ā Defined ā ā ā ā ā ā ā ā (losses) on ā on available- ā benefit ā Foreign ā ā ā ā ā cash flow ā for-sale ā pension plan ā currency ā ā ā ā hedges securities items items Total ā ā (In thousands (1) ) As of January 1, 2019 ā $ (492) ā $ ā ā $ (3,945) ā $ (24,888) ā $ (29,325) ā Other comprehensive income (loss) before reclassifications ā ā ā ā ā ā ā 16,943 ā 16,943 ā Amounts reclassified from accumulated other comprehensive income (loss) ā 427 ā ā ā 167 ā ā ā 594 ā Net other comprehensive income (loss) ā 427 ā ā ā 167 ā 16,943 ā 17,537 ā As of December 31, 2019 ā $ (65) ā $ ā ā $ (3,778) ā $ (7,945) ā $ (11,788) ā (1) All amounts are net of tax. ā The line items that were reclassified to net income include the following: ā Line item in consolidated statement of income (loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) Impairments and other charges ā ā ā $ ā ā $ ā ā $ 970 Interest expense ā ā ā 567 ā 567 ā 613 General and administrative expenses ā ā ā 217 ā 216 ā 200 Total income (loss) from continuing operations before income tax ā ā ā (784) ā (783) ā (1,783) Tax expense (benefit) ā ā ā ā (190) ā ā (187) ā ā (315) Reclassification adjustment for (gains)/ losses included in net income (loss) ā ā ā $ (594) ā $ (596) ā $ (1,468) ā Supplemental cash flow information includes the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Cash paid for income taxes ā $ 6,553 ā $ 11,383 ā $ 20,581 ā Cash paid for interest, net of capitalized interest ā $ 174,357 ā $ 202,803 ā $ 191,986 ā Net change in accounts payable related to capital expenditures ā $ (7,624) ā $ (8,556) ā $ (35,227) ā Non-cash increase in assets attributable to redeemable noncontrolling interest in subsidiary ā $ ā ā $ 43,928 ā $ 142,875 ā Acquisitions of businesses: ā ā ā ā ā ā ā ā ā ā Fair value of assets acquired ā $ 2,929 ā $ 48,053 ā $ 280,709 ā Goodwill ā ā ā ā ā 11,436 ā ā 5,690 ā Liabilities assumed ā ā ā (34,489) ā (55,742) ā Share issuance as consideration (non-cash financing activity) ā ā ā ā ā ā ā ā (178,993) ā Cash paid for acquisitions of businesses ā 2,929 ā 25,000 ā 51,664 ā Cash and restricted cash acquired in acquisitions of businesses ā ā ā ā ā (4,141) ā ā (63,983) ā Cash (acquired in) paid for acquisitions of businesses, net ā $ 2,929 ā $ 20,859 ā $ (12,319) ā ā |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Financial Information | |
Unaudited Quarterly Financial Information | Note 18 Unaudited Quarterly Financial Information ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā Quarter Ended ā March 31, June 30, September 30, December 31, ā ā (In thousands, except per share amounts) Operating revenues ā $ 799,640 ā $ 771,406 ā $ 758,076 ā $ 714,261 ā Income (loss) from continuing operations, net of tax ā $ (103,376) ā $ (192,801) ā $ (99,788) ā $ (284,533) ā Income (loss) from discontinued operations, net of tax ā (157) ā (34) ā 157 ā 22 ā Net income (loss) ā ā (103,533) ā ā (192,835) ā ā (99,631) ā ā (284,511) ā Less: Net (income) loss attributable to noncontrolling interest ā (14,176) ā (10,729) ā (19,297) ā 21,827 ā Net income (loss) attributable to Nabors ā $ (117,709) ā $ (203,564) ā $ (118,928) ā $ (262,684) ā Less: Preferred stock dividend ā (4,313) ā (4,312) ā (4,310) ā (4,309) ā Net income (loss) attributable to Nabors common shareholders ā $ (122,022) ā $ (207,876) ā $ (123,238) ā $ (266,993) ā Earnings (losses) per share: (1) ā ā ā ā ā ā ā ā ā ā ā ā ā Basic from continuing operations ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā Basic from discontinued operations ā ā ā ā ā ā ā ā ā Total Basic ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā Diluted from continuing operations ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā Diluted from discontinued operations ā ā ā ā ā ā ā ā ā Total Diluted ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā Quarter Ended ā March 31, June 30, September 30, December 31, ā ā (In thousands, except per share amounts) ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ 734,194 ā $ 761,920 ā $ 779,425 ā $ 782,080 ā Income (loss) from continuing operations, net of tax ā $ (143,587) ā $ (195,215) ā $ (93,710) ā $ (165,551) ā Income (loss) from discontinued operations, net of tax ā (75) ā (584) ā (13,933) ā (71) ā Net income (loss) ā ā (143,662) ā ā (195,799) ā ā (107,643) ā ā (165,622) ā Less: Net (income) loss attributable to noncontrolling interest ā (539) ā (2,953) ā (6,934) ā (17,796) ā Net income (loss) attributable to Nabors ā $ (144,201) ā $ (198,752) ā $ (114,577) ā $ (183,418) ā Less: Preferred stock dividend ā ā ā (3,680) ā (4,313) ā (4,312) ā Net income (loss) attributable to Nabors common shareholders ā $ (144,201) ā $ (202,432) ā $ (118,890) ā $ (187,730) ā Earnings (losses) per share: (1) ā ā ā ā ā ā ā ā ā ā ā ā ā Basic from continuing operations ā $ (0.46) ā $ (0.61) ā $ (0.31) ā $ (0.55) ā Basic from discontinued operations ā ā ā ā ā (0.04) ā ā ā Total Basic ā $ (0.46) ā $ (0.61) ā $ (0.35) ā $ (0.55) ā Diluted from continuing operations ā $ (0.46) ā $ (0.61) ā $ (0.31) ā $ (0.55) ā Diluted from discontinued operations ā ā ā ā ā (0.04) ā ā ā Total Diluted ā $ (0.46) ā $ (0.61) ā $ (0.35) ā $ (0.55) ā (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. (2) |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | Note 19 Segment Information ā Our business consists of five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions and Rig Technologies. The accounting policies of the segments are the same as those described in Note 2āSummary 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). ā The following table sets forth financial information with respect to our reportable operating segments: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) ā Operating revenues: ā ā ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā ā ā $ 1,240,936 ā $ 1,083,227 ā $ 805,223 ā Canada Drilling ā ā ā 68,274 ā 105,000 ā 82,929 ā International Drilling ā ā ā 1,324,142 ā 1,469,038 ā 1,474,060 ā Drilling Solutions ā ā ā 252,790 ā 250,242 ā 140,701 ā Rig Technologies ā ā ā 260,226 ā 270,988 ā 234,542 ā Other reconciling items (1) ā ā ā (102,985) ā (120,876) ā (173,170) ā Total ā ā ā $ 3,043,383 ā $ 3,057,619 ā $ 2,564,285 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) Adjusted operating income (loss): (2) ā ā ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā ā ā $ 64,313 ā $ (21,298) ā $ (213,877) ā Canada Drilling ā ā ā (14,483) ā (6,166) ā (22,262) ā International Drilling ā ā ā (8,903) ā 74,221 ā 108,428 ā Drilling Solutions ā ā ā 59,465 ā 37,626 ā 16,738 ā Rig Technologies ā ā ā (11,247) ā (25,762) ā (30,964) ā Total segment adjusted operating income (loss) ā ā ā $ 89,145 ā $ 58,621 ā $ (141,937) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: ā ā ā ā ā ā ā ā ā ā ā ā Total segment adjusted operating income (loss) (2) ā ā ā $ 89,145 ā $ 58,621 ā $ (141,937) ā Other reconciling items (3) ā ā ā (160,274) ā (166,815) ā (157,043) ā Earnings (losses) from unconsolidated affiliates ā ā ā ā (5) ā ā 1 ā ā 7 ā Investment income (loss) ā ā ā 10,218 ā ā (9,499) ā ā 1,194 ā Interest expense ā ā ā ā (204,311) ā ā (227,124) ā ā (222,889) ā Impairments and other charges ā ā ā ā (290,471) ā ā (144,446) ā ā (44,536) ā Other, net ā ā ā ā (33,224) ā ā (29,532) ā ā (14,880) ā Income (loss) from continuing operations before income taxes ā ā ā $ (588,922) ā $ (518,794) ā $ (580,084) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Depreciation and amortization ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā $ 419,680 ā $ 394,586 ā $ 375,171 ā Canada Drilling ā 29,766 ā 37,172 ā 39,597 ā International Drilling ā 372,883 ā 383,227 ā 400,753 ā Drilling Solutions ā 32,289 ā 31,037 ā 16,188 ā Rig Technologies ā 12,715 ā 16,387 ā 11,530 ā Other reconciling items (3) ā 8,758 ā 4,461 ā (296) ā Total ā $ 876,091 ā $ 866,870 ā $ 842,943 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Capital expenditures: ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā $ 184,705 ā $ 222,338 ā $ 330,875 ā Canada Drilling ā 5,020 ā 12,981 ā 17,197 ā International Drilling ā 209,728 ā 172,565 ā 159,817 ā Drilling Solutions ā 23,598 ā 30,709 ā 35,617 ā Rig Technologies ā 6,592 ā 12,250 ā 4,715 ā Other reconciling items (3) ā (5,676) ā 2,592 ā (9,030) ā Total ā $ 423,967 ā $ 453,435 ā $ 539,191 ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Total assets: ā ā ā ā ā ā ā U.S. Drilling ā $ 2,369,200 ā $ 2,982,974 ā Canada Drilling ā 202,706 ā 252,817 ā International Drilling ā 2,979,494 ā 3,320,347 ā Drilling Solutions ā 218,004 ā 281,078 ā Rig Technologies ā 324,523 ā 401,044 ā Other reconciling items (3) ā 666,731 ā 615,684 ā Total ā $ 6,760,658 ā $ 7,853,944 ā (1) Represents the elimination of inter-segment transactions. ā (2) Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. 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. ā (3) Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures. ā The following table sets forth financial information with respect to Naborsā operations by geographic area based on the location of service provided: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Operating revenues ā ā ā ā ā ā ā ā ā ā U.S. ā $ 1,554,442 ā $ 1,347,448 ā $ 973,464 ā Outside the U.S. ā 1,488,941 ā 1,710,171 ā 1,590,821 ā ā ā $ 3,043,383 ā $ 3,057,619 ā $ 2,564,285 ā Property, plant and equipment, net: ā ā ā ā ā ā ā ā ā ā U.S. ā $ 2,470,579 ā $ 2,892,910 ā $ 3,163,425 ā Outside the U.S. ā 2,459,970 ā 2,574,960 ā 2,946,140 ā ā ā $ 4,930,549 ā $ 5,467,870 ā $ 6,109,565 ā Goodwill: ā ā ā ā ā ā ā ā ā ā U.S. ā $ 13,430 ā $ 65,633 ā $ 54,198 ā Outside the U.S. ā 14,950 ā 118,281 ā 119,028 ā ā ā $ 28,380 ā $ 183,914 ā $ 173,226 ā ā During the years ended December 31, 2019, 2018 and 2017, $696.4 million, $764.5 million and $727.7 million of our consolidated operating revenue was from Saudi Arabia. No other individual country outside of the U.S. was material to our consolidated operating revenue during any of the three periods presented. ā One customer accounted for approximately 22%, 24% and 29% of our consolidated operating revenues during the years ended December 31, 2019, 2018 and 2017, respectively, and is included primarily in our International Drilling reportable segment. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Revenue Recognition | Note 20 Revenue Recognition ā On January 1, 2018, we adopted Topic 606, Revenue from Contracts with Customers (ASC 606). Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. In addition, ASC 606 requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ā We elected to adopt the standard using the modified retrospective method to all contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. There was no material impact to our consolidated financial statements as a result of adopting ASC 606. Revenues for reporting periods beginning after January 1, 2018 are presented under ASC 606, while revenues prior to January 1, 2018 continue to be reported under previous revenue recognition requirements of ASC 605. ā We recognize revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Contract drilling revenues are recorded over time utilizing the input method based on time elapsed. The measurement of progress considers the transfer of the service to the customer as we provide daily drilling services. We receive payment after the services have been performed by billing customers periodically (typically monthly). However, a portion of our revenues are recognized at a point-in-time as control is transferred at a distinct point in time such as with the sale of our top drives and other capital equipment. Within our drilling contracts, we have identified one performance obligation in which the transaction price is allocated. ā Disaggregation of revenue ā In the following table, revenue is disaggregated by geographical region. The table also includes a reconciliation of the disaggregated revenue with the reportable segments: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, 2019 ā ā U.S. Drilling ā Canada Drilling ā International Drilling ā Drilling Solutions ā Rig Technologies ā Other ā Total ā ā (In thousands) Lower 48 ā $ 1,021,879 ā $ ā ā $ ā ā $ 170,639 ā $ 172,559 ā $ ā ā $ 1,365,077 U.S. Offshore Gulf of Mexico ā 156,931 ā ā ā ā ā 13,331 ā ā ā ā ā ā 170,262 Alaska ā 62,126 ā ā ā ā ā 4,787 ā 986 ā ā ā ā 67,899 Canada ā ā ā 68,274 ā ā ā 1,749 ā 8,852 ā ā ā ā 78,875 Middle East & Asia ā ā ā ā ā 765,493 ā 43,941 ā 56,455 ā ā ā ā 865,889 Latin America ā ā ā ā ā 355,189 ā 15,558 ā 2,318 ā ā ā ā 373,065 Europe, Africa & CIS ā ā ā ā ā 203,460 ā 2,785 ā 19,056 ā ā ā ā 225,301 Eliminations & other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (102,985) ā (102,985) Total ā $ 1,240,936 ā $ 68,274 ā $ 1,324,142 ā $ 252,790 ā $ 260,226 ā $ (102,985) ā $ 3,043,383 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, 2018 ā ā U.S. Drilling ā Canada Drilling ā International Drilling ā Drilling Solutions ā Rig Technologies ā Other ā Total ā ā (In thousands) Lower 48 ā $ 910,819 ā $ ā ā $ ā ā $ 173,219 ā $ 188,550 ā $ ā ā $ 1,272,588 U.S. Offshore Gulf of Mexico ā 122,946 ā ā ā ā ā 13,776 ā ā ā ā ā ā 136,722 Alaska ā 49,462 ā ā ā ā ā 3,670 ā 777 ā ā ā ā 53,909 Canada ā ā ā 105,000 ā ā ā 5,849 ā 29,682 ā ā ā ā 140,531 Middle East & Asia ā ā ā ā ā 888,500 ā 35,486 ā 26,236 ā ā ā ā 950,222 Latin America ā ā ā ā ā 360,385 ā 15,350 ā 8,514 ā ā ā ā 384,249 Europe, Africa & CIS ā ā ā ā ā 220,153 ā 2,892 ā 17,229 ā ā ā ā 240,274 Eliminations & other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (120,876) ā (120,876) Total ā $ 1,083,227 ā $ 105,000 ā $ 1,469,038 ā $ 250,242 ā $ 270,988 ā $ (120,876) ā $ 3,057,619 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, 2017 ā ā U.S. Drilling ā Canada Drilling ā International Drilling ā Drilling Solutions ā Rig Technologies ā Other ā Total ā ā (In thousands) Lower 48 ā $ 681,669 ā $ ā ā $ ā ā $ 118,574 ā $ 211,609 ā $ ā ā $ 1,011,852 U.S. Offshore Gulf of Mexico ā 75,994 ā ā ā ā ā 1,021 ā ā ā ā ā ā 77,015 Alaska ā 47,560 ā ā ā ā ā 3,925 ā 623 ā ā ā ā 52,108 Canada ā ā ā 82,929 ā ā ā 6,054 ā 7,618 ā ā ā ā 96,601 Middle East & Asia ā ā ā ā ā 875,175 ā 7,397 ā 13,493 ā ā ā ā 896,065 Latin America ā ā ā ā ā 388,235 ā 3,266 ā 392 ā ā ā ā 391,893 Europe, Africa & CIS ā ā ā ā ā 210,650 ā 464 ā 807 ā ā ā ā 211,921 Eliminations & other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (173,170) ā (173,170) Total ā $ 805,223 ā $ 82,929 ā $ 1,474,060 ā $ 140,701 ā $ 234,542 ā $ (173,170) ā $ 2,564,285 ā Contract balances ā We perform our obligations under a contract with a customer by transferring goods or services in exchange for consideration from the customer. We recognize a contract asset or liability when we transfer goods or services to a customer and bill an amount which differs from the revenue allocated to the related performance obligations. ā The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on our consolidated balance sheet. In general, we receive payments from customers based on dayrates as stipulated in our contracts (i.e. operating rate, standby rate). The invoices billed to the customer are based on the varying rates applicable to the operating status on each rig. Accounts receivable are recorded when the right to consideration becomes unconditional. ā Dayrate contracts also may contain fees charged to the customer for up-front rig modifications, mobilization and demobilization of equipment and personnel. These fees are associated with contract fulfillment activities, and the related revenue (subject to any constraint on estimates of variable consideration) is allocated to a single performance obligation and recognized ratably over the initial term of the contract. Mobilization fees are generally billable to the customer in the initial phase of a contract and generate contract liabilities until they are recognized as revenue. Demobilization fees are generally received at the end of the contract and generate contract assets when they are recognized as revenue prior to becoming receivables from the customer. ā We receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request. Reimbursable revenues are variable and subject to uncertainty as the amounts received and timing thereof are dependent on factors outside of our influence. Accordingly, these revenues are constrained and not recognized until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of the customer. We are generally considered a principal in these transactions and record the associated revenues at the gross amounts billed to the customer. ā The opening and closing balances of our receivables, contract assets and current and long-term contract liabilities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Contract ā Contract ā Contract ā Contract ā ā Contract ā Assets ā Assets ā Liabilities ā Liabilities ā Receivables (Current) (Long-term) (Current) (Long-term) ā ā (In millions) As of December 31, 2018 ā $ 791.2 ā $ 55.8 ā $ 32.3 ā $ 116.7 ā $ 69.7 As of December 31, 2019 ā $ 507.0 ā $ 48.6 ā $ 24.9 ā $ 66.8 ā $ 70.5 ā Approximately 65% of the contract liability balance at the beginning of the period was recognized as revenue during 2019 and 22% is expected to be recognized during 2020 ā Additionally, 60% of the contract asset balance at the beginning of the period was recognized as expense during 2019 and 20% is expected to be recognized during 2020. The remaining 20% of the contract asset balance at the beginning of the period is expected to be recognized as expense during 2021 or thereafter. This disclosure does not include variable consideration allocated entirely to a wholly unsatisfied performance obligation or promise to transfer a distinct good or service that forms part of a single performance obligation. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | Note 21 Leases ā Prior to January 1, 2019, we accounted for leases under ASC 840 and did not record any right of use asset or corresponding lease liability. We adopted ASC 842 using a modified retrospective approach with an effective date of January 1, 2019. As such, financial information for prior periods has not been adjusted and continues to be reported under ASC 840. Effective with the adoption of ASC 842, we have changed our accounting policy for leases as detailed below. ā We have evaluated the provisions of ASC 842, including certain practical expedients allowed. The significant practical expedients we adopted include the following: ā ā We elected the practical expedient to apply the transition approach as of the beginning of the period of adoption and not restate comparative periods; ā ā We elected to utilize the ā package of threeā expedients, as defined in ASC 842, whereby we did not reassess whether contracts existing prior to the effective date contain leases, nor did we reassess lease classification determinations nor whether initial direct costs qualify for capitalization; ā ā We elected the practical expedient to not capitalize any leases with initial terms of twelve months or less on our condensed consolidated balance sheet; ā ā For all underlying classes of leased assets, we elected the practical expedient to not separate lease and non-lease components; and ā ā We elected the practical expedient to continue to account for land easements (also known as ārights of wayā) that were not previously accounted for as leases consistent with prior accounting until such contracts are modified or replaced, at which time they would be assessed for lease classification under ASC 842. ā As of the date of implementation on January 1, 2019, the impact of the adoption of ASC 842 resulted in the recognition of a right of use asset ā Our leases primarily consist of office space and equipment used globally within our operations. We determine whether a contract is or contains a lease at inception of the contract based on answers to a series of questions that address whether an identified asset exists and whether we have the right to obtain substantially all of the benefit of the assets and to control its use over the full term of the agreement. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate using a credit notching approach to discount the lease payments based on information available at lease commencement. Certain of our lease agreements include options to extend and options to terminate the lease, which we do not include in our minimum lease terms unless management is reasonably certain to exercise. We do not separate lease and nonlease components of contracts. There are no material residual value guarantees nor any restrictions or covenants included in our lease agreements. Certain of our leases include provisions for variable payments. These variable payments are typically determined based on a measure of throughput or actual days or another measure of usage and are not included in the calculation of lease liabilities and right-of-use assets. Lease Position ā The table below presents the lease related assets and liabilities recorded on our condensed consolidated balance sheet: ā ā ā ā ā ā ā ā December 31, ā ā ā 2019 ā Classification on the Balance Sheet ā (In thousands) Assets ā ā ā ā Operating lease assets Other long-term assets ā $ 46,647 Total lease assets ā ā $ 46,647 ā ā ā ā ā Liabilities ā ā ā ā Current liabilities: ā ā ā ā Operating lease liabilities Current lease liabilities ā $ 13,479 Noncurrent liabilities: ā ā ā ā Operating lease liabilities Other long-term liabilities ā $ 33,396 Total lease liabilities ā ā $ 46,875 ā Lease Costs The table below presents certain information related to the lease costs for our operating leases: ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, ā ā 2019 ā (In thousands) Operating lease cost ā ā $ 16,154 ā Short-term lease cost ā ā 2,568 ā Variable lease cost ā ā 605 ā Total lease cost ā ā $ 19,327 ā ā Other Information The table below presents supplemental cash flow information related to leases: ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā ā (In thousands) Cash paid for amounts included in the measurement of lease liabilities: ā ā ā Operating cash flows for operating leases ā $ 16,154 ā ā ā ā Right of use assets obtained in exchange for lease obligations: ā ā ā Operating leases ā $ 17,852 ā Lease Terms and Discount Rates ā The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases: ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā ā 2019 ā ā ā ā ā ā Weighted-average remaining lease term - operating leases ā ā ā 7.13 ā Weighted-average discount rate - operating leases ā ā ā 5.97% ā ā Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet: ā ā ā ā ā ā ā December 31, 2019 ā (In thousands) 2020 ā $ 15,586 ā 2021 ā 10,344 ā 2022 ā 7,099 ā 2023 ā 4,816 ā 2024 ā 2,577 ā Thereafter ā 17,649 ā Total undiscounted lease liability ā ā 58,071 ā Less: amount of lease payments representing interest ā ā (11,196) ā Long-term lease obligations ā $ 46,875 ā ā The minimum rental commitments under non-cancelable operating leases under ASC 840 as disclosed in our 2018 Annual Report, with lease terms in excess of one year subsequent to December 31, 2018, were as follows: ā ā ā ā ā ā December 31, 2018 ā (In thousands) 2019 ā $ 10,701 2020 ā 7,104 2021 ā 3,774 2022 ā 2,356 2023 ā 1,538 Thereafter ā 7,482 Total minimum lease payments ā $ 32,955 ā |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Consolidating Financial Information | |
Condensed Consolidating Financial Information | Note 22 Condensed Consolidating Financial Information ā Nabors has fully and unconditionally guaranteed all of the issued public debt securities of Nabors Delaware, a 100% 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. ā The following condensed consolidating financial information presents condensed consolidating balance sheets as of December 31, 2019 and 2018, and statements of income (loss), statements of comprehensive income (loss) and the statements of cash flows for the years ended December 31, 2019, 2018 and 2017 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. ā Condensed Consolidating Balance Sheets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) ā ASSETS ā Current assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 319 ā $ 38 ā $ 435,633 ā $ ā ā $ 435,990 ā Short-term investments ā ā ā ā ā 16,506 ā ā ā 16,506 ā Accounts receivable, net ā ā ā ā ā 453,042 ā ā ā 453,042 ā Inventory, net ā ā ā ā ā 176,341 ā ā ā 176,341 ā Assets held for sale ā ā ā ā ā 2,530 ā ā ā 2,530 ā Other current assets ā 50 ā ā ā 164,207 ā ā ā 164,257 ā Total current assets ā 369 ā 38 ā 1,248,259 ā ā ā 1,248,666 ā Property, plant and equipment, net ā ā ā ā ā 4,930,549 ā ā ā 4,930,549 ā Goodwill ā ā ā ā ā 28,380 ā ā ā 28,380 ā Intercompany receivables ā 51 ā ā ā 2,611 ā (2,662) ā ā ā Investment in consolidated affiliates ā ā 2,001,607 ā ā 5,780,656 ā ā 4,226,017 ā ā (12,008,280) ā ā ā ā Deferred income taxes ā ā ā ā ā 431,441 ā ā 305,844 ā ā (431,441) ā ā 305,844 ā Other long-term assets ā ā ā 99 ā 254,445 ā (7,325) ā 247,219 ā Total assets ā $ 2,002,027 ā $ 6,212,234 ā $ 10,996,105 ā $ (12,449,708) ā $ 6,760,658 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā LIABILITIES AND EQUITY ā Current liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current portion of debt ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā Trade accounts payable ā 128 ā 1 ā 295,030 ā ā ā 295,159 ā Accrued liabilities ā 8,579 ā 51,701 ā 273,002 ā ā ā 333,282 ā Income taxes payable ā ā ā ā ā 14,628 ā ā ā 14,628 ā Current lease liabilities ā ā ā ā ā 13,479 ā ā ā 13,479 ā Total current liabilities ā 8,707 ā 51,702 ā 596,139 ā ā ā 656,548 ā Long-term debt ā ā ā 3,340,545 ā ā ā (7,325) ā 3,333,220 ā Other long-term liabilities ā ā ā 29,331 ā 262,853 ā ā ā 292,184 ā Deferred income taxes ā ā ā ā ā 434,590 ā (431,441) ā 3,149 ā Intercompany payable ā 10,508 ā 231,759 ā (239,605) ā (2,662) ā ā ā Total liabilities ā 19,215 ā 3,653,337 ā 1,053,977 ā (441,428) ā 4,285,101 ā Redeemable noncontrolling interest in subsidiary ā ā ā ā ā 425,392 ā ā ā 425,392 ā Shareholdersā equity ā 1,982,812 ā 2,558,897 ā 9,449,382 ā (12,008,280) ā 1,982,811 ā Noncontrolling interest ā ā ā ā ā 67,354 ā ā ā 67,354 ā Total equity ā 1,982,812 ā 2,558,897 ā 9,516,736 ā (12,008,280) ā 2,050,165 ā Total liabilities and equity ā $ 2,002,027 ā $ 6,212,234 ā $ 10,996,105 ā $ (12,449,708) ā $ 6,760,658 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2018 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) ā ASSETS ā Current assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 474 ā $ 42 ā $ 447,250 ā $ ā ā $ 447,766 ā Short-term investments ā ā ā ā ā 34,036 ā ā ā 34,036 ā Accounts receivable, net ā ā ā ā ā 756,320 ā ā ā 756,320 ā Inventory, net ā ā ā ā ā 165,587 ā ā ā 165,587 ā Assets held for sale ā ā ā ā ā 12,250 ā ā ā 12,250 ā Other current assets ā 50 ā 433 ā 177,121 ā ā ā 177,604 ā Total current assets ā 524 ā 475 ā 1,592,564 ā ā ā 1,593,563 ā Property, plant and equipment, net ā ā ā ā ā 5,467,870 ā ā ā 5,467,870 ā Goodwill ā ā ā ā ā 183,914 ā ā ā 183,914 ā Intercompany receivables ā 95,946 ā 218,129 ā 2,611 ā (316,686) ā ā ā Investment in consolidated affiliates ā ā 2,658,827 ā ā 5,494,886 ā ā 4,079,269 ā ā (12,232,982) ā ā ā ā Deferred income taxes ā ā ā ā ā 388,089 ā ā 345,091 ā ā (388,089) ā ā 345,091 ā Other long-term assets ā ā ā 142 ā 277,689 ā (14,325) ā 263,506 ā Total assets ā $ 2,755,297 ā $ 6,101,721 ā $ 11,949,008 ā $ (12,952,082) ā $ 7,853,944 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā LIABILITIES AND EQUITY ā Current liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current portion of debt ā $ ā ā $ ā ā $ 561 ā $ ā ā $ 561 ā Trade accounts payable ā 132 ā 14 ā 392,697 ā ā ā 392,843 ā Accrued liabilities ā 28,815 ā 62,830 ā 326,267 ā ā ā 417,912 ā Income taxes payable ā ā ā ā ā 20,761 ā ā ā 20,761 ā Total current liabilities ā 28,947 ā 62,844 ā 740,286 ā ā ā 832,077 ā Long-term debt ā ā ā 3,600,209 ā ā ā (14,325) ā 3,585,884 ā Other long-term liabilities ā ā ā 29,331 ā 245,154 ā ā ā 274,485 ā Deferred income taxes ā ā ā ā ā 394,400 ā (388,089) ā 6,311 ā Intercompany payable ā 25,500 ā ā ā 291,186 ā (316,686) ā ā ā Total liabilities ā 54,447 ā 3,692,384 ā 1,671,026 ā (719,100) ā 4,698,757 ā Redeemable noncontrolling interest in subsidiary ā ā ā ā ā 404,861 ā ā ā 404,861 ā Shareholdersā equity ā 2,700,850 ā 2,409,337 ā 9,823,645 ā (12,232,982) ā 2,700,850 ā Noncontrolling interest ā ā ā ā ā 49,476 ā ā ā 49,476 ā Total equity ā 2,700,850 ā 2,409,337 ā 9,873,121 ā (12,232,982) ā 2,750,326 ā Total liabilities and equity ā $ 2,755,297 ā $ 6,101,721 ā $ 11,949,008 ā $ (12,952,082) ā $ 7,853,944 ā ā ā Condensed Consolidating Statements of Income (Loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Revenues and other income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ ā ā $ ā ā $ 3,043,383 ā $ ā ā $ 3,043,383 ā Earnings (losses) from unconsolidated affiliates ā ā ā ā ā ā ā ā (5) ā ā ā ā ā (5) ā Earnings (losses) from consolidated affiliates ā (693,450) ā 285,612 ā 140,474 ā 267,364 ā ā ā Investment income (loss) ā ā ā ā ā 12,330 ā (2,112) ā 10,218 ā Total revenues and other income ā (693,450) ā 285,612 ā 3,196,182 ā 265,252 ā 3,053,596 ā Costs and other deductions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Direct costs ā ā ā 6 ā 1,929,325 ā ā ā 1,929,331 ā General and administrative expenses ā 8,255 ā 673 ā 251,375 ā (1,572) ā 258,731 ā Research and engineering ā ā ā ā ā 50,359 ā ā ā 50,359 ā Depreciation and amortization ā ā ā 125 ā 875,966 ā ā ā 876,091 ā Interest expense, net ā ā ā 204,963 ā (652) ā ā ā 204,311 ā Impairments and other charges ā ā ā ā ā ā ā ā 290,471 ā ā ā ā ā 290,471 ā Other, net ā ā 1,043 ā ā (17,277) ā ā 47,886 ā ā 1,572 ā 33,224 ā Intercompany interest expense, net ā 137 ā ā ā (137) ā ā ā ā ā Total costs and other deductions ā 9,435 ā 188,490 ā 3,444,593 ā ā ā 3,642,518 ā Income (loss) from continuing operations before income taxes ā (702,885) ā 97,122 ā (248,411) ā 265,252 ā (588,922) ā Income tax expense (benefit) ā ā ā (43,352) ā 134,928 ā ā ā 91,576 ā Income (loss) from continuing operations, net of tax ā (702,885) ā 140,474 ā (383,339) ā 265,252 ā (680,498) ā Income (loss) from discontinued operations, net of tax ā ā ā ā ā (12) ā ā ā (12) ā Net income (loss) ā (702,885) ā 140,474 ā (383,351) ā 265,252 ā (680,510) ā Less: Net (income) loss attributable to noncontrolling interest ā ā ā ā ā (22,375) ā ā ā (22,375) ā Net income (loss) attributable to Nabors ā $ (702,885) ā $ 140,474 ā $ (405,726) ā $ 265,252 ā $ (702,885) ā Less: Preferred stock dividend ā (17,244) ā ā ā ā ā ā ā (17,244) ā Net income (loss) attributable to Nabors common shareholders ā $ (720,129) ā $ 140,474 ā $ (405,726) ā $ 265,252 ā $ (720,129) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenues and other income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ ā ā $ ā ā $ 3,057,619 ā $ ā ā $ 3,057,619 ā Earnings (losses) from unconsolidated affiliates ā ā ā ā ā 1 ā ā ā 1 ā Earnings (losses) from consolidated affiliates ā (629,060) ā 218,539 ā 35,279 ā 375,242 ā ā ā Investment income (loss) ā 2 ā ā ā 2,984 ā (12,485) ā (9,499) ā Total revenues and other income ā ā (629,058) ā ā 218,539 ā ā 3,095,883 ā ā 362,757 ā ā 3,048,121 ā Costs and other deductions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Direct costs ā ā ā ā ā ā ā ā 1,976,974 ā ā ā ā ā 1,976,974 ā General and administrative expenses ā ā 9,725 ā ā 635 ā ā 256,145 ā ā (683) ā ā 265,822 ā Research and engineering ā ā ā ā ā ā ā ā 56,147 ā ā ā ā ā 56,147 ā Depreciation and amortization ā ā ā ā ā 125 ā ā 866,745 ā ā ā ā ā 866,870 ā Interest expense, net ā ā ā ā ā 231,971 ā ā (4,847) ā ā ā ā ā 227,124 ā Impairments and other charges ā ā ā ā ā 5,269 ā ā 139,177 ā ā ā ā ā 144,446 ā Other, net ā ā 1,803 ā ā ā ā ā 27,046 ā ā 683 ā ā 29,532 ā Intercompany interest expense ā ā 362 ā ā ā ā ā (362) ā ā ā ā ā ā ā Total costs and other deductions ā 11,890 ā 238,000 ā 3,317,025 ā ā ā 3,566,915 ā Income (loss) from continuing operations before income taxes ā (640,948) ā (19,461) ā (221,142) ā 362,757 ā (518,794) ā Income tax expense (benefit) ā ā ā (54,740) ā 134,009 ā ā ā 79,269 ā Income (loss) from continuing operations, net of tax ā (640,948) ā 35,279 ā (355,151) ā 362,757 ā (598,063) ā Income (loss) from discontinued operations, net of tax ā ā ā ā ā (14,663) ā ā ā (14,663) ā Net income (loss) ā (640,948) ā 35,279 ā (369,814) ā 362,757 ā (612,726) ā Less: Net (income) loss attributable to noncontrolling interest ā ā ā ā ā (28,222) ā ā ā (28,222) ā Net income (loss) attributable to Nabors ā $ (640,948) ā $ 35,279 ā $ (398,036) ā $ 362,757 ā $ (640,948) ā Less: Preferred stock dividend ā (12,305) ā ā ā ā ā ā ā (12,305) ā Net income (loss) attributable to Nabors common shareholders ā $ (653,253) ā $ 35,279 ā $ (398,036) ā $ 362,757 ā $ (653,253) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2017 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Revenues and other income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ ā ā $ ā ā $ 2,564,285 ā $ ā ā $ 2,564,285 ā Earnings (losses) from unconsolidated affiliates ā ā ā ā ā ā ā ā 7 ā ā ā ā ā 7 ā Earnings (losses) from consolidated affiliates ā (528,180) ā 18,380 ā (343,233) ā 853,033 ā ā ā Investment income (loss) ā 17 ā 63 ā 13,031 ā (11,917) ā 1,194 ā Total revenues and other income ā (528,163) ā 18,443 ā 2,234,090 ā 841,116 ā 2,565,486 ā Costs and other deductions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Direct costs ā ā ā ā ā 1,718,069 ā ā ā 1,718,069 ā General and administrative expenses ā 10,995 ā 715 ā 240,139 ā (665) ā 251,184 ā Research and engineering ā ā ā ā ā 51,069 ā ā ā 51,069 ā Depreciation and amortization ā ā ā 125 ā 842,818 ā ā ā 842,943 ā Interest expense, net ā ā ā 232,103 ā (9,214) ā ā ā 222,889 ā Impairments and other charges ā ā ā ā ā ā ā ā 44,536 ā ā ā ā ā 44,536 ā Other, net ā ā 7,662 ā ā 19,033 ā ā (12,480) ā ā 665 ā 14,880 ā Intercompany interest expense, net ā (9) ā ā ā 9 ā ā ā ā ā Total costs and other deductions ā 18,648 ā 251,976 ā 2,874,946 ā ā ā 3,145,570 ā Income (loss) from continuing operations before income taxes ā (546,811) ā (233,533) ā (640,856) ā 841,116 ā (580,084) ā Income tax expense (benefit) ā ā ā 109,700 ā (192,670) ā ā ā (82,970) ā Income (loss) from continuing operations, net of tax ā (546,811) ā (343,233) ā (448,186) ā 841,116 ā (497,114) ā Income (loss) from discontinued operations, net of tax ā ā ā ā ā (43,519) ā ā ā (43,519) ā Net income (loss) ā (546,811) ā (343,233) ā (491,705) ā 841,116 ā (540,633) ā Less: Net (income) loss attributable to noncontrolling interest ā ā ā ā ā (6,178) ā ā ā (6,178) ā Net income (loss) attributable to Nabors ā $ (546,811) ā $ (343,233) ā $ (497,883) ā $ 841,116 ā $ (546,811) ā Less: Preferred stock dividend ā ā ā ā ā ā ā ā ā ā ā Net income (loss) attributable to Nabors common shareholders ā $ (546,811) ā $ (343,233) ā $ (497,883) ā $ 841,116 ā $ (546,811) ā ā Condensed Consolidating Statements of Comprehensive Income (Loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net income (loss) attributable to Nabors ā $ (702,885) ā $ 140,474 ā $ (405,726) ā $ 265,252 ā $ (702,885) ā Other comprehensive income (loss) before tax: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Translation adjustment attributable to Nabors ā 16,943 ā (3) ā 16,943 ā (16,940) ā 16,943 ā Pension liability amortization and adjustment ā 217 ā 217 ā 434 ā (651) ā 217 ā Unrealized gains (losses) and amortization on cash flow hedges ā 567 ā 567 ā 567 ā (1,134) ā 567 ā Other comprehensive income (loss) before tax ā 17,727 ā 781 ā 17,944 ā (18,725) ā 17,727 ā Income tax expense (benefit) related to items of other comprehensive income (loss) ā 190 ā 190 ā 380 ā (570) ā 190 ā Other comprehensive income (loss), net of tax ā 17,537 ā 591 ā 17,564 ā (18,155) ā 17,537 ā Comprehensive income (loss) attributable to Nabors ā (685,348) ā 141,065 ā (388,162) ā 247,097 ā (685,348) ā Net income (loss) attributable to noncontrolling interest ā ā ā ā ā 22,375 ā ā ā 22,375 ā Translation adjustment attributable to noncontrolling interest ā ā ā ā ā 55 ā ā ā 55 ā Comprehensive income (loss) attributable to noncontrolling interest ā ā ā ā ā 22,430 ā ā ā 22,430 ā Comprehensive income (loss) ā $ (685,348) ā $ 141,065 ā $ (365,732) ā $ 247,097 ā $ (662,918) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net income (loss) attributable to Nabors ā $ (640,948) ā $ 35,279 ā $ (398,036) ā $ 362,757 ā $ (640,948) ā Other comprehensive income (loss) before tax: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Translation adjustment attributable to Nabors ā (31,962) ā 4 ā (31,962) ā 31,958 ā (31,962) ā Pension liability amortization and adjustment ā 216 ā 216 ā 432 ā (648) ā 216 ā Unrealized gains (losses) and amortization on cash flow hedges ā 567 ā 567 ā 567 ā (1,134) ā 567 ā Adoption of ASU No. 2016-01 ā (9,144) ā ā ā (9,144) ā 9,144 ā (9,144) ā Other comprehensive income (loss) before tax ā (40,323) ā 787 ā (40,107) ā 39,320 ā (40,323) ā Income tax expense (benefit) related to items of other comprehensive income (loss) ā 187 ā 187 ā 374 ā (561) ā 187 ā Other comprehensive income (loss), net of tax ā (40,510) ā 600 ā (40,481) ā 39,881 ā (40,510) ā Comprehensive income (loss) attributable to Nabors ā (681,458) ā 35,879 ā (438,517) ā 402,638 ā (681,458) ā Net income (loss) attributable to noncontrolling interest ā ā ā ā ā 28,222 ā ā ā 28,222 ā Translation adjustment attributable to noncontrolling interest ā ā ā ā ā (251) ā ā ā (251) ā Comprehensive income (loss) attributable to noncontrolling interest ā ā ā ā ā 27,971 ā ā ā 27,971 ā Comprehensive income (loss) ā $ (681,458) ā $ 35,879 ā $ (410,546) ā $ 402,638 ā $ (653,487) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2017 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net income (loss) attributable to Nabors ā $ (546,811) ā $ (343,233) ā $ (497,883) ā $ 841,116 ā $ (546,811) ā Other comprehensive income (loss) before tax ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Translation adjustment attributable to Nabors ā 28,372 ā ā ā 28,372 ā (28,372) ā 28,372 ā Unrealized gains (losses) on marketable securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized gains (losses) on marketable securities ā (6,061) ā ā ā (6,061) ā 6,061 ā (6,061) ā Less: reclassification adjustment for (gains) losses included in net income (loss) ā 970 ā ā ā 970 ā (970) ā 970 ā Unrealized gains (losses) on marketable securities ā (5,091) ā ā ā (5,091) ā 5,091 ā (5,091) ā Pension liability amortization and adjustment ā (275) ā (275) ā (550) ā 825 ā (275) ā Unrealized gains (losses) and amortization on cash flow hedges ā 613 ā 613 ā 613 ā (1,226) ā 613 ā Other comprehensive income (loss) before tax ā 23,619 ā 338 ā 23,344 ā (23,682) ā 23,619 ā Income tax expense (benefit) related to items of other comprehensive income (loss) ā 315 ā 315 ā 630 ā (945) ā 315 ā Other comprehensive income (loss), net of tax ā 23,304 ā 23 ā 22,714 ā (22,737) ā 23,304 ā Comprehensive income (loss) attributable to Nabors ā (523,507) ā (343,210) ā (475,169) ā 818,379 ā (523,507) ā Net income (loss) attributable to noncontrolling interest ā ā ā ā ā 6,178 ā ā ā 6,178 ā Translation adjustment attributable to noncontrolling interest ā ā ā ā ā 282 ā ā ā 282 ā Comprehensive income (loss) attributable to noncontrolling interest ā ā ā ā ā 6,460 ā ā ā 6,460 ā Comprehensive income (loss) ā $ (523,507) ā $ (343,210) ā $ (468,709) ā $ 818,379 ā $ (517,047) ā ā ā Condensed Consolidating Statements of Cash Flows ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) Net cash provided by (used for) operating activities ā $ 79,910 ā $ (179,265) ā $ 848,271 ā $ (64,358) ā $ 684,558 ā Cash flows from investing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Purchases of investments ā ā ā ā ā ā ā ā (4,323) ā ā ā ā ā (4,323) ā Sales and maturities of investments ā ā ā ā ā ā ā ā 18,849 ā ā ā ā ā 18,849 ā Cash paid for acquisitions of businesses, net of cash acquired ā ā ā ā ā (2,929) ā ā ā (2,929) ā Cash paid for investments in consolidated affiliates ā ā ā ā ā (8,500) ā 8,500 ā ā ā Capital expenditures ā ā ā ā ā (427,741) ā ā ā (427,741) ā Proceeds from sales of assets and insurance claims ā ā ā ā ā ā 60,288 ā ā ā 60,288 ā Change in intercompany balances ā ā ā 449,888 ā (449,888) ā ā ā ā ā Net cash provided by (used for) investing activities ā ā ā 449,888 ā (814,244) ā 8,500 ā (355,856) ā Cash flows from financing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Reduction of long-term debt ā ā ā (455,360) ā ā ā ā ā (455,360) ā Debt issuance costs ā ā ā (1,767) ā ā ā ā ā (1,767) ā Proceeds from revolving credit facilities ā ā ā ā 1,050,000 ā ā ā ā ā 1,050,000 ā Reduction in revolving credit facilities ā ā ā ā (865,000) ā ā ā ā ā (865,000) ā Proceeds from (payments for) short-term borrowings ā ā ā ā ā (561) ā ā ā (561) ā Proceeds from issuance of common shares, net of issuance costs ā 6 ā ā ā (6) ā ā ā ā ā Dividends to common and preferred shareholders ā ā (54,347) ā ā ā 12 ā 4,752 ā (49,583) ā Distributions to noncontrolling interest ā ā ā ā ā (4,552) ā ā ā (4,552) ā Proceeds from issuance of intercompany debt ā ā 6,600 ā ā ā (6,600) ā ā ā ā ā Paydown of intercompany debt ā ā (27,700) ā (7,000) ā 34,700 ā ā ā ā ā Proceeds from parent contributions ā ā ā 8,500 ā ā ā (8,500) ā ā ā Distribution from subsidiary to parent ā ā ā ā ā (59,606) ā 59,606 ā ā ā Other changes ā (4,624) ā ā ā (126) ā ā ā (4,750) ā Net cash (used for) provided by financing activities ā (80,065) ā (270,627) ā (36,739) ā 55,858 ā (331,573) ā Effect of exchange rate changes on cash and cash equivalents ā ā ā ā ā (6,171) ā ā ā (6,171) ā Net increase (decrease) in cash, cash equivalents and restricted cash ā (155) ā (4) ā (8,883) ā ā ā (9,042) ā Cash, cash equivalents and restricted cash, beginning of period ā 474 ā 43 ā 450,563 ā ā ā 451,080 ā Cash, cash equivalents and restricted cash, end of period ā $ 319 ā $ 39 ā $ 441,680 ā $ ā ā $ 442,038 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) Net cash provided by (used for) operating activities ā $ 86,504 ā $ (208,943) ā $ 495,709 ā $ (47,497) ā $ 325,773 ā Cash flows from investing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Purchases of investments ā ā ā ā ā (676) ā ā ā (676) ā Sales and maturities of investments ā ā ā ā ā 4,287 ā ā ā 4,287 ā Cash paid for acquisitions of businesses, net of cash acquired ā ā ā (20,859) ā ā ā ā ā (20,859) ā Cash paid for investments in consolidated affiliates ā (587,500) ā ā ā (206,500) ā 794,000 ā ā ā Capital expenditures ā ā ā ā ā ā (458,938) ā ā ā (458,938) ā Proceeds from sale of assets and insurance claims ā ā ā ā ā 109,098 ā ā ā 109,098 ā Change in intercompany balances ā ā ā ā 502,856 ā (502,856) ā ā ā ā ā Net cash provided by (used for) investing activities ā (587,500) ā 481,997 ā (1,055,585) ā 794,000 ā (367,088) ā Cash flows from financing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Proceeds from issuance of long-term debt ā ā ā 800,000 ā ā ā ā ā 800,000 ā Reduction in long-term debt ā ā ā (878,278) ā ā ā ā ā (878,278) ā Debt issuance costs ā ā ā (21,277) ā ā ā ā ā (21,277) ā Proceeds from revolving credit facilities ā ā ā 1,135,000 ā ā ā ā ā 1,135,000 ā Reduction in revolving credit facilities ā ā ā (1,475,000) ā ā ā ā ā (1,475,000) ā Proceeds from (payments for) commercial paper, net ā ā ā (40,000) ā ā ā ā ā (40,000) ā Proceeds from (payments for) short-term borrowings ā ā ā ā ā 380 ā ā ā 380 ā Proceeds from issuance of common shares, net of issuance costs ā 301,404 ā ā ā ā ā ā ā 301,404 ā Proceeds from issuance of preferred stock, net of issuance costs ā 277,927 ā ā ā ā ā ā ā 277,927 ā Dividends to common and preferred shareholders ā (99,583) ā ā ā ā ā 12,485 ā (87,098) ā Redeemable noncontrolling interest ā ā ā ā ā 156,935 ā ā ā 156,935 ā Distributions to noncontrolling interest ā ā ā ā ā (5,452) ā ā ā (5,452) ā Proceeds from (payments for) issuance of intercompany debt ā 45,500 ā ā ā (45,500) ā ā ā ā ā Paydown of intercompany debt ā (21,000) ā ā ā 21,000 ā ā ā ā ā Proceeds from parent contributions ā ā ā 206,500 ā 587,500 ā (794,000) ā ā ā Distribution from subsidiary to parent ā ā ā ā ā (35,012) ā 35,012 ā ā ā Other changes ā (3,869) ā ā ā (5,043) ā ā ā (8,912) ā Net cash (used for) provided by financing activities ā 500,379 ā (273,055) ā 674,808 ā (746,503) ā 155,629 ā Effect of exchange rate changes on cash and cash equivalents ā ā ā ā ā (5,263) ā ā ā (5,263) ā Net increase (decrease) in cash, cash equivalents and restricted cash ā (617) ā (1) ā 109,669 ā ā ā 109,051 ā Cash, cash equivalents and restricted cash, beginning of period ā 1,091 ā 44 ā 340,894 ā ā ā 342,029 ā Cash, cash equivalents and restricted cash, end of period ā $ 474 ā $ 43 ā $ 450,563 ā $ ā ā $ 451,080 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2017 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net cash provided by (used for) operating activities ā $ 143,444 ā $ (90,229) ā $ 142,527 ā $ (132,986) ā $ 62,756 ā Cash flows from investing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Purchases of investments ā ā ā ā ā (6,722) ā ā ā (6,722) ā Sales and maturities of investments ā ā ā ā ā 13,069 ā ā ā 13,069 ā Cash paid for acquisitions of businesses, net of cash acquired ā ā ā ā ā 12,319 ā ā ā 12,319 ā Cash paid for investments in consolidated affiliates ā (100) ā ā ā (85,960) ā 86,060 ā ā ā Capital expenditures ā ā ā ā ā (574,467) ā ā ā (574,467) ā Proceeds from sale of assets and insurance claims ā ā ā ā ā ā 57,933 ā ā ā 57,933 ā Change in intercompany balances ā ā ā (599,974) ā 599,974 ā ā ā ā ā Net cash provided by (used for) investing activities ā (100) ā (599,974) ā 16,146 ā 86,060 ā (497,868) ā Cash flows from financing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Proceeds from issuance of long-term debt ā ā ā 411,200 ā ā ā ā ā 411,200 ā Reduction in long-term debt ā ā ā (270,269) ā (111,545) ā ā ā (381,814) ā Debt issuance costs ā ā ā (11,043) ā ā ā ā ā (11,043) ā Proceeds from revolving credit facilities ā ā ā 725,000 ā ā ā ā ā 725,000 ā Reduction in revolving credit facilities ā ā ā (215,000) ā ā ā ā ā (215,000) ā Proceeds from (payments for) commercial paper, net ā ā ā 40,000 ā ā ā ā ā 40,000 ā Cash proceeds (payments) from equity component of exchangeable debt ā ā ā 159,952 ā ā ā ā ā 159,952 ā Purchase of capped call hedge transactions ā ā ā (40,250) ā ā ā ā ā (40,250) ā Payments on term loan ā ā ā (162,500) ā ā ā ā ā (162,500) ā Proceeds from (payments for) short-term borrowings ā ā ā ā ā (543) ā ā ā (543) ā Proceeds from issuance of common shares, net of issuance costs ā 8,299 ā ā ā 1 ā ā ā 8,300 ā Repurchase of common shares ā (18,071) ā ā ā ā ā ā ā (18,071) ā Dividends to common and preferred shareholders ā (80,419) ā ā ā ā ā 11,916 ā (68,503) ā Redeemable noncontrolling interest ā ā ā ā ā 61,123 ā ā ā 61,123 ā Noncontrolling interest contribution ā ā ā ā ā 20,000 ā ā ā 20,000 ā Distributions to noncontrolling interest ā ā ā ā ā (7,272) ā ā ā (7,272) ā Proceeds from (payments for) issuance of intercompany debt ā 57,000 ā 20,000 ā (77,000) ā ā ā ā ā Paydown of intercompany debt ā (102,000) ā (20,000) ā 122,000 ā ā ā ā ā Proceeds from parent contributions ā ā ā 42,980 ā 43,080 ā (86,060) ā ā ā Distribution from subsidiary to parent ā ā ā ā ā (121,070) ā 121,070 ā ā ā Other changes ā (8,210) ā ā ā (189) ā ā ā (8,399) ā Net cash (used for) provided by financing activities ā (143,401) ā 680,070 ā (71,415) ā 46,926 ā 512,180 ā Effect of exchange rate changes on cash and cash equivalents ā ā ā ā ā (29) ā ā ā (29) ā Net increase (decrease) in cash, cash equivalents and restricted cash ā (57) ā (10,133) ā 87,229 ā ā ā 77,039 ā Cash, cash equivalents and restricted cash, beginning of period ā 1,148 ā 10,177 ā 253,665 ā ā ā 264,990 ā Cash, cash equivalents and restricted cash, end of period ā 1,091 ā 44 ā 340,894 ā ā ā 342,029 ā ā |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ā VALUATION AND QUALIFYING ACCOUNTS ā Years Ended December 31, 2019, 2018 and 2017 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Charged to ā ā ā ā ā Balance at ā Costs and ā Charged to ā ā ā Balance at ā ā ā Beginning ā Other ā Other ā ā ā End of ā ā of Period ā Deductions ā Accounts ā Deductions ā Period ā ā (In thousands) 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 41,207 17,529 (51) 3,097 ā $ 61,782 ā Inventory reserve ā $ 27,854 11,808 ā (4,614) ā $ 35,048 ā Valuation allowance on deferred tax assets ā $ 1,917,390 ā 862,611 ā ā $ 2,780,001 ā 2018 ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 44,376 3,024 (226) (5,967) ā $ 41,207 ā Inventory reserve ā $ 28,934 ā 14,688 (15,768) ā $ 27,854 ā Valuation allowance on deferred tax assets ā $ 1,869,490 ā 47,900 ā ā $ 1,917,390 ā 2017 ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 43,757 2,544 86 (2,011) ā $ 44,376 ā Inventory reserve ā $ 26,537 5,897 ā (3,500) ā $ 28,934 ā Valuation allowance on deferred tax assets ā $ 1,807,728 ā 61,762 ā ā $ 1,869,490 ā ā |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation ā 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 U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. ā In addition to the consolidation of our majority owned subsidiaries, we also consolidate variable interest entities (āVIEāsā) when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. Our joint venture, SANAD, which is equally owned by Saudi Aramco and Nabors, has been consolidated. As we have the power to direct activities that most significantly impact SANADās economic performance, including operations, maintenance and certain sourcing and procurement, we have determined Nabors to be the primary beneficiary. See Note 13āJoint Ventures. ā |
Cash and Cash Equivalents | Cash and Cash Equivalents ā Cash and cash equivalents include demand deposits and various other short-term investments with original maturities of three months or less. |
Short-term Investments | Short-term Investments ā Short-term investments consist primarily of equity securities which are stated at fair value with any changes in fair value recognized in investment income (loss) in our consolidated statements of income (loss). |
Inventory | Inventory ā 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 $35.0 million and $27.9 million as of December 31, 2019 and 2018, respectively, included the following: ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Raw materials ā $ 130,414 ā $ 116,840 ā Work-in-progress ā 5,498 ā 20,329 ā Finished goods ā 40,429 ā 28,418 ā ā ā $ 176,341 ā $ 165,587 ā ā |
Property, Plant and Equipment | Property, Plant and Equipment ā 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 rigs using the units-of-production method. For each day a rig is operating, we depreciate it over an approximate 4,927 8,030 30 ā Depreciation on our buildings, oilfield hauling and mobile equipment, 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 (buildingsā 10 3 ā 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 assetās 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. Significant and unanticipated changes to the assumptions could result in future impairments. A significantly prolonged period of lower oil and natural gas prices could 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. ā 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 a long-lived asset that is held and used. |
Goodwill | Goodwill ā 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 the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of one of our reporting units is greater than its carrying amount. If the carrying amount exceeds the fair value, an impairment charge will be recognized in an amount equal to the excess; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ā 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, which require the use of significant unobservable inputs, representative of a Level 3 fair value measurement. Our cash flow models involve 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 fair value estimates of these reporting units are sensitive to varying dayrates, utilization and costs. A significantly prolonged period of lower oil and natural gas prices, other than those assumed in developing our forecasts, or changes in laws and regulations could adversely affect the demand for and prices of our services, which could in turn result in future goodwill and other intangible asset impairment charges for these reporting units due to the potential impact on our estimate of our future operating results. 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 approximately 2%. ā 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 unitsā 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. ā The change in the carrying amount of goodwill for our segments for the years ended December 31, 2019 and 2018 was as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Acquisitions ā ā ā ā ā ā ā ā ā ā ā ā ā and ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā Purchase ā Disposals ā Cumulative ā ā ā Balance at ā ā December 31, ā Price ā and ā Translation ā Other ā December 31, ā ā 2017 ā Adjustments ā Impairments ā Adjustment ā Adjustments ā 2018 ā ā (In thousands) U.S. Drilling ā $ 50,149 ā $ ā ā $ ā ā $ ā ā $ ā ā $ 50,149 ā International Drilling ā ā 75,634 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 75,634 ā Drilling Solutions ā ā ā ā ā 11,436 (1) ā ā ā ā ā ā ā ā ā ā 11,436 ā Rig Technologies ā 47,443 ā ā ā ā ā (748) ā ā ā 46,695 ā Total ā $ 173,226 ā $ 11,436 ā $ ā ā $ (748) ā $ ā ā $ 183,914 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Acquisitions ā ā ā ā ā ā ā ā ā ā ā ā ā and ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā Purchase ā Disposals ā Cumulative ā ā ā Balance at ā ā December 31, ā Price ā and ā Translation ā Other ā December 31, ā ā 2018 ā Adjustments ā Impairments ā Adjustment ā Adjustment ā 2019 ā ā (In thousands) U.S. Drilling ā $ 50,149 ā $ ā ā $ (52,203) (2) $ ā ā $ 2,054 ā $ ā ā International Drilling ā ā 75,634 ā ā ā ā ā (75,634) (2) ā ā ā ā ā ā ā ā ā Drilling Solutions ā 11,436 ā ā ā ā ā ā ā ā ā 11,436 ā Rig Technologies ā 46,695 ā ā ā (28,136) (2) 439 ā (2,054) ā 16,944 ā Total ā $ 183,914 ā $ ā ā $ (155,973) ā $ 439 ā $ ā ā $ 28,380 ā (1) Represents the goodwill recorded in connection with our acquisition of PetroMar Technologies. See Note 5āAcquisitions for additional discussion. (2) We determined the carrying value of some of our reporting units exceeded their fair value. As such, we recognized a goodwill impairment of $156.0 million. See Note 3āImpairments and Other Charges. ā Goodwill for the consolidated company, totaling approximately $8.2 million, is expected to be deductible for tax purposes. |
Litigation and Insurance Reserves | Litigation and Insurance Reserves ā 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 15āCommitments 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 ā We recognize revenues and costs on daywork contracts daily as the work progresses over the contract term. 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. ā 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. ā We recognize revenue for top drives and other capital equipment we manufacture upon transfer of control, which generally occurs when the product has been shipped to the customer. ā We recognize, as operating revenue, proceeds from business interruption insurance claims in the period that the claim is realizable. Proceeds from casualty insurance settlements in excess of the carrying value of damaged assets are recognized in other, net in our consolidated statement of income (loss) 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 in our consolidated statement of income (loss). ā 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 ā 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 Robotic Drilling Systems AS (āRDSā) and PetroMar Technologies, we recorded intangible assets related to in process research and development of $32.5 million and $21.7 million, respectively. 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, 2019, 2018 or 2017. |
Income Taxes | Income Taxes ā 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. ā On December 22, 2017, the United States enacted the Tax Cut and Jobs Act of 2017 (āTax Reform Actā). Among a number of significant changes to the current U.S. federal income tax rules, the Tax Reform Act reduces the marginal U.S. corporate income tax rate from 35 percent down to 21 percent, limits the current deduction for net interest expense, limits the use of net operating losses to offset future taxable income, and imposes a type of minimum tax designed to reduce the benefits derived from intercompany transactions and payments that result in base erosion. As a result of the Tax Reform Act, we were required to revalue deferred tax assets and liabilities from 35 percent to 21 percent and recognized expense of approximately $138.6 million, which is included as a component of income tax expense in continuing operations for the year ended December 31, 2017. Our US operations do not have any controlled foreign corporations and as such are not subject to the Global Intangible Low-Taxed Income provisions of the Tax Reform Act. ā We recognize increases to our tax reserves for uncertain tax positions along with interest and penalties as an increase to other long-term liabilities. ā 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 ā 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 ā The preparation of financial statements in conformity with U.S. 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: ā ā depreciation of property, plant and equipment; ā ā impairment of long-lived assets; ā ā impairment of goodwill and intangible assets; ā ā income taxes; ā ā litigation and self-insurance reserves; and ā ā fair value of assets acquired and liabilities assumed. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted ā In February 2016, the FASB issued ASU No. 2016-02, Leases, relating to leases to increase transparency and comparability among companies. This standard requires that 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 requires disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. We adopted this guidance under the modified retrospective approach as of January 1, 2019. We preliminarily determined that our drilling contracts contained a lease component, and the adoption would require us to separately recognize revenue associated with the lease and services components. In July 2018, the FASB issued ASU No. 2018-11, which provides a practical expedient that allows entities to combine lease and non-lease components where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. Our drilling contracts contain a lease component related to the underlying drilling equipment, in addition to the service component provided by our crews and our expertise to operate such drilling equipment. We have determined that the non-lease service component of our drilling contracts is the predominant element of the combined component and will account for the combined components as a single performance obligation under Topic 606, Revenue from Contracts with Customers. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical accounting relating to lease identification and classification for existing leases upon adoption. With respect to leases whereby we are the lessee, we recognized upon adoption on January 1, 2019 lease liabilities and offsetting " right of use ā In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. In addition, the standard requires certain disclosures regarding stranded tax effects. This guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have elected to not reclassify the stranded tax effects within accumulated other comprehensive income to retained earnings and therefore there is no impact on our consolidated financial statements. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted ā In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes accounting requirements for the recognition of credit losses from an incurred or probable impairment methodology to a current expected credit losses (CECL) methodology. The guidance is effective for interim and annual periods beginning after December 15, 2019. The guidance will be applied using the modified retrospective method with a cumulative effect adjustment to beginning retained earnings. Trade receivables (including the allowance for doubtful accounts) is the only financial instrument in scope for ASU 2016-13 currently held by the Company. We are currently evaluating the effect the guidance will have on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Inventory | ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Raw materials ā $ 130,414 ā $ 116,840 ā Work-in-progress ā 5,498 ā 20,329 ā Finished goods ā 40,429 ā 28,418 ā ā ā $ 176,341 ā $ 165,587 ā |
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 segments for the years ended December 31, 2019 and 2018 was as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Acquisitions ā ā ā ā ā ā ā ā ā ā ā ā ā and ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā Purchase ā Disposals ā Cumulative ā ā ā Balance at ā ā December 31, ā Price ā and ā Translation ā Other ā December 31, ā ā 2017 ā Adjustments ā Impairments ā Adjustment ā Adjustments ā 2018 ā ā (In thousands) U.S. Drilling ā $ 50,149 ā $ ā ā $ ā ā $ ā ā $ ā ā $ 50,149 ā International Drilling ā ā 75,634 ā ā ā ā ā ā ā ā ā ā ā ā ā ā 75,634 ā Drilling Solutions ā ā ā ā ā 11,436 (1) ā ā ā ā ā ā ā ā ā ā 11,436 ā Rig Technologies ā 47,443 ā ā ā ā ā (748) ā ā ā 46,695 ā Total ā $ 173,226 ā $ 11,436 ā $ ā ā $ (748) ā $ ā ā $ 183,914 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Acquisitions ā ā ā ā ā ā ā ā ā ā ā ā ā and ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at ā Purchase ā Disposals ā Cumulative ā ā ā Balance at ā ā December 31, ā Price ā and ā Translation ā Other ā December 31, ā ā 2018 ā Adjustments ā Impairments ā Adjustment ā Adjustment ā 2019 ā ā (In thousands) U.S. Drilling ā $ 50,149 ā $ ā ā $ (52,203) (2) $ ā ā $ 2,054 ā $ ā ā International Drilling ā ā 75,634 ā ā ā ā ā (75,634) (2) ā ā ā ā ā ā ā ā ā Drilling Solutions ā 11,436 ā ā ā ā ā ā ā ā ā 11,436 ā Rig Technologies ā 46,695 ā ā ā (28,136) (2) 439 ā (2,054) ā 16,944 ā Total ā $ 183,914 ā $ ā ā $ (155,973) ā $ 439 ā $ ā ā $ 28,380 ā (1) Represents the goodwill recorded in connection with our acquisition of PetroMar Technologies. See Note 5āAcquisitions for additional discussion. (2) We determined the carrying value of some of our reporting units exceeded their fair value. As such, we recognized a goodwill impairment of $156.0 million. See Note 3āImpairments and Other Charges. |
Impairments and Other Charges (
Impairments and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairments and Other Charges | |
Schedule of impairments and other charges | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā 2019 2018 2017 ā ā ā (In thousands) ā Tangible Assets & Equipment: ā ā ā ā ā ā ā ā ā ā ā Provision for retirement of assets ā ā $ 33,205 ā $ 14,617 ā $ ā ā Impairment of long-lived assets ā ā ā 10,363 ā ā 45,570 ā ā 6,895 ā Subtotal ā ā ā 43,568 ā ā 60,187 ā ā 6,895 ā ā ā ā ā ā ā ā ā ā ā ā ā Goodwill & Intangible Assets: ā ā ā ā ā ā ā ā ā ā ā Goodwill impairments ā ā ā 155,973 ā ā ā ā ā ā ā Intangible asset impairment ā ā ā 47,731 ā ā ā ā ā ā ā Subtotal ā ā ā 203,704 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other Charges: ā ā ā ā ā ā ā ā ā ā ā Provision for international activities ā ā ā 43,220 ā ā ā ā ā ā ā Severance and transaction-related costs ā ā ā 11,447 ā ā 14,323 ā ā 21,628 ā Loss (gain) on debt buyback ā ā ā (11,468) ā ā 5,268 ā ā 16,013 ā Divestiture of International assets ā ā ā ā ā ā 64,668 ā ā ā ā Total ā ā $ 290,471 ā $ 144,446 ā $ 44,536 ā |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Tesco Corporation | |
Business Acquisition [Line Items] | |
Allocation of purchase price as of the acquisition date | ā ā ā ā ā ā ā Fair Value (In thousands) ā at Acquisition Assets: ā ā ā ā Cash and cash equivalents ā $ 59,804 ā Accounts receivable ā 40,465 ā Inventory ā 44,525 ā Other current assets ā 13,889 ā Property, plant and equipment ā 68,591 ā Other long-term assets ā 3,647 ā Total assets ā 230,921 ā Liabilities: ā ā ā ā Accounts payable ā $ 14,111 ā Accrued liabilities ā 35,383 ā Other long-term liabilities ā ā 2,436 ā Total liabilities ā 51,930 ā Net assets acquired ā $ 178,991 ā |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Fair value of financial instruments | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā As of December 31, ā 2019 2018 ā ā Interest ā Carrying Fair ā Interest ā Carrying Fair ā ā Rate ā Value ā Value ā Rate ā Value ā Value ā ā (In thousands) 5.00% senior notes due September 2020 5.44 % $ 282,046 ā $ 284,907 5.25 % $ 614,748 ā $ 590,336 4.625% senior notes due September 2021 4.76 % 634,588 ā 632,516 4.75 % 668,347 ā 603,457 5.50% senior notes due January 2023 5.90 % 501,003 ā 483,834 5.84 % 586,000 ā 465,999 5.10% senior notes due September 2023 5.24 % 336,810 ā 303,860 5.26 % 342,923 ā 262,494 0.75% senior exchangeable notes due January 2024 5.97 % 472,603 ā 431,503 6.04 % 450,689 ā 358,012 5.75% senior notes due February 2025 ā 6.01 % 781,502 ā 705,040 5.87 % 791,502 ā 598,953 2012 Revolving credit facility 3.71 % 355,000 ā 355,000 3.58 % 170,000 ā 170,000 2018 Revolving credit facility ā % ā ā ā ā % ā ā ā Other ā % ā ā ā ā % 561 ā 561 ā ā ā ā ā 3,363,552 ā $ 3,196,661 ā ā ā ā 3,624,770 ā $ 3,049,812 Less: current portion ā ā ā ā ā ā ā ā ā ā ā ā 561 ā ā ā Less: deferred financing costs ā ā ā ā 30,332 ā ā ā ā ā ā ā 38,325 ā ā ā ā ā ā ā $ 3,333,220 ā ā ā ā ā ā $ 3,585,884 ā ā ā |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based compensation disclosures | |
Stock option transactions under various stock-based employee compensation plans | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted- ā ā ā ā ā ā ā Weighted- ā Average ā ā ā ā ā ā ā Average ā Remaining ā Aggregate ā ā ā ā Exercise ā Contractual ā Intrinsic Options Shares Price Term Value ā ā (In thousands, except exercise price) Options outstanding as of December 31, 2018 3,776 ā $ 11.36 ā ā ā ā ā ā ā Granted 138 ā 2.60 ā ā ā ā ā ā ā Exercised ā ā ā ā ā ā ā ā ā ā Surrendered (2,269) ā 9.83 ā ā ā ā ā ā ā Forfeited (15) ā 9.18 ā ā ā ā ā ā ā Options outstanding as of December 31, 2019 1,630 ā $ 12.77 4.37 years ā $ 119 ā Options exercisable as of December 31, 2019 1,630 ā $ 12.77 4.37 years ā $ 119 ā |
Schedule of grant date fair value | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 Weighted average fair value of options granted ā $ 1.07 ā $ 1.75 ā $ 2.86 ā Weighted average risk free interest rate ā 1.79% ā 2.59% ā 1.85% ā Dividend yield ā 1.65% ā 3.03% ā 2.94% ā Volatility (1) ā 57.59% ā 57.11% ā 50.82% ā Expected life (in years) ā 4.0 ā 4.0 ā 4.0 ā (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. ā |
Unvested stock options | ā ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Unvested Stock Options ā Outstanding ā Value ā ā (In thousands, except fair value) Unvested as of December 31, 2018 17 ā $ 5.21 ā Granted 138 ā 1.07 ā Vested (155) ā 1.53 ā Forfeited ā ā ā ā ā ā Unvested as of December 31, 2019 ā ā $ ā ā |
Restricted Stock | |
Share-based compensation disclosures | |
Unvested restricted stock | ā ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Restricted shares ā Outstanding ā Value ā ā (In thousands, except fair value) Unvested as of December 31, 2018 3,612 ā $ 9.16 ā Granted 3,265 ā 3.26 ā Vested (1,444) ā 9.66 ā Forfeited ā (521) ā ā 6.06 ā Unvested as of December 31, 2019 4,912 ā $ 5.42 ā |
Restricted Stock Based on Performance Conditions | |
Share-based compensation disclosures | |
Unvested restricted stock | ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Performance based restricted shares ā Outstanding ā Value ā ā (In thousands, except fair value) Outstanding as of December 31, 2018 ā 1,746 ā $ 9.35 Granted 2,413 ā 3.10 Vested (919) ā 10.15 Outstanding as of December 31, 2019 3,240 ā $ 4.47 |
Restricted Stock Based on Market Conditions | |
Share-based compensation disclosures | |
Schedule of grant date fair value | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā 2019 2018 2017 ā ā ā ā ā ā ā ā ā ā Risk free interest rate ā ā 2.48% ā ā 2.02% ā ā 1.62% ā Expected volatility ā ā 70.00% ā ā 57.00% ā ā 55.00% ā Closing stock price at grant date ā $ 2.19 ā $ 6.87 ā $ 16.81 ā Expected term (in years) ā ā 3.0 ā ā 3.0 ā 3.0 ā |
Unvested restricted stock | ā ā ā ā ā ā ā ā ā ā Weighted-Average ā ā ā ā Grant-Date Fair Market based restricted shares ā Outstanding ā Value ā ā (In thousands, except fair value) Outstanding as of December 31, 2018 ā 1,357 ā $ 7.09 Granted 2,610 ā 1.42 ā Vested (188) ā 5.58 ā Forfeited ā (562) ā ā 5.58 ā Outstanding as of December 31, 2019 3,217 ā $ 2.84 ā |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | |
Major Components of Property, Plant and Equipment | ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Land ā $ 33,931 ā $ 43,187 ā Buildings ā 132,603 ā 123,619 ā Drilling rigs and related equipment ā 12,948,504 ā 13,021,580 ā Oilfield hauling and mobile equipment ā 270,826 ā 267,223 ā Other machinery and equipment ā 192,081 ā 197,094 ā Oil and gas properties ā ā 12,286 ā ā 12,286 ā Construction-in-process (1) ā 25,391 ā 30,395 ā ā ā $ 13,615,622 ā $ 13,695,384 ā Less: accumulated depreciation and amortization ā (8,685,073) ā (8,227,514) ā ā ā $ 4,930,549 ā $ 5,467,870 ā (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, 2019 or 2018. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Long-term debt | ā ā ā ā ā ā ā ā ā ā ā As of December 31, ā 2019 2018 ā ā (In thousands) 5.00% senior notes due September 2020 (1) ā $ 282,046 ā $ 614,748 ā 4.625% senior notes due September 2021 ā 634,588 ā 668,347 ā 5.50% senior notes due January 2023 ā 501,003 ā 586,000 ā 5.10% senior notes due September 2023 ā 336,810 ā 342,923 ā 0.75% senior exchangeable notes due January 2024 ā 472,603 ā 450,689 ā 5.75% senior notes due February 2025 ā ā 781,502 ā 791,502 ā 2012 Revolving credit facility (1) ā 355,000 ā ā 170,000 ā 2018 Revolving credit facility ā ā ā ā ā ā Other ā ā ā ā 561 ā ā ā ā 3,363,552 ā ā 3,624,770 ā Less: current portion ā ā ā 561 ā Less: deferred financing costs ā ā 30,332 ā ā 38,325 ā ā ā $ 3,333,220 ā $ 3,585,884 ā ā (1) The 5.00% senior notes due September 2020 and 2012 Revolving Credit Facility have been classified as long-term because we have the ability and intent to repay this obligation utilizing our 2018 Revolving Credit Facility. |
Maturity of primary debt | As of December 31, 2019, the principal amount and maturities of our primary debt for each of the five years after 2019 and thereafter are as follows: ā ā ā ā ā ā ā Paid at Maturity ā ā (In thousands) 2020 ā $ 637,162 (1) 2021 ā 634,999 (2) 2022 ā ā ā 2023 ā 838,281 (3) 2024 ā 575,000 (4) Thereafter ā 781,502 (5) ā ā $ 3,466,944 ā (1) Represents our 5.00% senior notes due September 2020 and amounts outstanding under our 2012 Revolving Credit Facility due July 2020. Subsequent to the balance sheet through the date of this report, approximately $3.0 million aggregate principal amount of our 5.00% senior notes were repurchased in the open market, aside from the tender offer. ā (2) Represents our 4.625% senior notes due September 2021. Approximately $379.7 million aggregate principal amount of our 4.625% senior notes were tendered pursuant to the previously announced offer to purchase and consent solicitation during January 2020 and approximately $5.0 million aggregate principal amount were repurchased in the open market, aside from the tender offer. ā (3) Represents our 5.50% senior notes due January 2023 and 5.10% senior notes due September 2023. Approximately $407.7 million aggregate principal amount of our 5.50% senior notes and $165.5 million aggregate principal amount of our 5.10% senior notes were tendered pursuant to the previously announced offer to purchase and consent solicitation during January 2020. Subsequent to the balance sheet through the date of this report, approximately $9.0 million aggregate principal amount of our 5.50% senior notes and $4.2 million aggregate principal amount of our 5.10% senior notes were repurchased in the open market. ā (4) Represents our 0.75% senior exchangeable notes due January 2024. ā (5) Represents our 5.75% senior notes due February 2025. |
Short-Term Borrowings | ā ā ā ā ā ā ā December 31, ā ā 2019 ā ā (In thousands) Credit available ā $ 890,902 ā Less: Letters of credit outstanding, inclusive of financial and performance guarantees ā 146,788 ā Remaining availability ā $ 744,114 ā |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income (loss) from continuing operations before income taxes | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, United States and Other Jurisdictions 2019 2018 2017 ā ā (In thousands) United States ā $ 5,979 ā $ (119,419) ā $ (369,162) ā Other jurisdictions ā (594,901) ā (399,375) ā (210,922) ā Income (loss) from continuing operations before income taxes ā $ (588,922) ā $ (518,794) ā $ (580,084) ā |
Income tax expense (benefit) from continuing operations | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā ā ā ā ā ā ā ā ā (In thousands) Current: ā ā ā ā ā ā ā ā ā ā U.S. federal ā $ 1,210 ā $ (32,351) ā $ (160,761) ā Outside the U.S. ā 54,097 ā 32,928 ā 59,491 ā State ā 318 ā 1,811 ā (810) ā ā ā $ 55,625 ā $ 2,388 ā $ (102,080) ā Deferred: ā ā ā ā ā ā ā ā ā ā U.S. federal ā $ 58,157 ā $ 37,476 ā $ 49,020 ā Outside the U.S. ā (25,428) ā 39,518 ā (26,684) ā State ā 3,222 ā (113) ā (3,226) ā ā ā $ 35,951 ā $ 76,881 ā $ 19,110 ā Income tax expense (benefit) ā $ 91,576 ā $ 79,269 ā $ (82,970) ā |
Reconciliation of the differences between taxes on income (loss) before income taxes | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Income tax provision at statutory (Bermuda rate of 0%) ā $ ā ā $ ā ā $ ā ā Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate ā 54,060 ā 49,375 ā (98,119) ā Increase (decrease) in valuation allowance ā 32,869 ā 38,822 ā 29,165 ā Impact of Tax Reform Act ā ā ā ā ā 138,635 ā Tax reserves and interest ā ā 1,107 ā ā (10,626) ā ā (148,615) ā State income taxes (benefit) ā 3,540 ā 1,698 ā (4,036) ā Income tax expense (benefit) ā $ 91,576 ā $ 79,269 ā $ (82,970) ā Effective tax rate ā (15.5%) ā (15.3%) ā 14.3% ā |
Deferred tax assets and liabilities | ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Deferred tax assets: ā ā ā ā ā ā ā Net operating loss carryforwards ā $ 2,834,851 ā $ 1,967,910 ā Equity compensation ā 6,577 ā 7,038 ā Deferred revenue ā 8,873 ā 16,494 ā Tax credit and other attribute carryforwards ā 97,215 ā 100,752 ā Insurance loss reserves ā 2,248 ā 2,451 ā Accrued interest ā 172,120 ā 206,088 ā Other ā 95,588 ā 82,167 ā Subtotal ā 3,217,472 ā 2,382,900 ā Valuation allowance ā (2,813,567) ā (1,917,390) ā Deferred tax assets: ā $ 403,905 ā $ 465,510 ā Deferred tax liabilities: ā ā ā ā ā ā ā Depreciation and amortization for tax in excess of book expense ā $ 80,155 ā $ 102,810 ā Other ā 21,055 ā 23,920 ā Deferred tax liability ā $ 101,210 ā $ 126,730 ā Net deferred tax assets (liabilities) ā $ 302,695 ā $ 338,780 ā Balance Sheet Summary: ā ā ā ā ā ā ā Net noncurrent deferred tax asset ā $ 305,844 ā $ 345,091 ā Net noncurrent deferred tax liability ā (3,149) ā (6,311) ā Net deferred tax asset (liability) ā $ 302,695 ā $ 338,780 ā ā |
Schedule of reconciliation of our uncertain tax positions | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 2017 ā ā (In thousands) Balance as of January 1 ā $ 25,711 ā ā $ 33,203 ā $ 179,255 ā Additions based on tax positions related to the current year ā ā ā ā ā ā ā ā Additions for tax positions of prior years ā 1,003 ā ā 308 ā 25,119 ā Reductions for tax positions for prior years ā (860) ā ā (7,800) ā (171,171) ā Settlements ā ā (84) ā ā ā ā ā ā ā ā Balance as of December 31 ā $ 25,770 ā ā $ 25,711 ā $ 33,203 ā |
Joint Ventures (Tables)
Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Joint Ventures | |
Schedule of condensed balance sheet of SANAD | ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Assets: ā ā ā ā ā ā ā Cash and cash equivalents ā $ 289,575 ā $ 211,618 ā Accounts receivable ā 68,624 ā 73,699 ā Other current assets ā 18,149 ā 17,198 ā Property, plant and equipment, net ā 455,751 ā 457,963 ā Other long-term assets ā 15,118 ā 36,583 ā Total assets ā $ 847,217 ā $ 797,061 ā Liabilities: ā ā ā ā ā ā ā Accounts payable ā $ 64,365 ā $ 60,087 ā Accrued liabilities ā 17,929 ā 8,530 ā Total liabilities ā $ 82,294 ā $ 68,617 ā |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Summary of total maximum amount of financial guarantees issued | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Maximum Amount ā 2020 2021 2022 Thereafter Total ā ā (In thousands) Financial standby letters of credit and other financial surety instruments ā $ 216,053 3,690 ā ā ā $ 219,743 ā |
Earnings (Losses) Per Share (Ta
Earnings (Losses) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Losses) Per Share | |
Earnings (losses) per share computations | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands, except per share amounts) BASIC EPS: ā ā ā ā ā ā ā ā ā ā ā ā Net income (loss) (numerator): ā ā ā ā ā ā ā ā ā ā ā ā Income (loss) from continuing operations, net of tax ā ā ā $ (680,498) ā $ (598,063) ā $ (497,114) ā Less: net (income) loss attributable to noncontrolling interest ā ā ā (22,375) ā (28,222) ā (6,178) ā Less: preferred stock dividends ā ā ā (17,244) ā (12,305) ā ā ā Less: accrued distribution on redeemable noncontrolling interest in subsidiary ā ā ā ā (20,534) ā ā (11,098) ā ā ā ā Less: distributed and undistributed earnings allocated to unvested shareholders ā ā ā ā (459) ā ā (1,819) ā ā 13,210 ā Numerator for basic earnings per share: ā ā ā ā ā ā ā ā ā ā ā ā Adjusted income (loss) from continuing operations, net of tax - basic ā ā ā $ (741,110) ā $ (651,507) ā $ (490,082) ā Income (loss) from discontinued operations, net of tax ā ā ā $ (12) ā $ (14,663) ā $ (43,519) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares outstanding - basic ā ā ā 351,617 ā 334,397 ā 280,653 ā Earnings (losses) per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic from continuing operations ā ā ā $ (2.11) ā $ (1.95) ā $ (1.75) ā Basic from discontinued operations ā ā ā ā ā (0.04) ā (0.15) ā Total Basic ā ā ā $ (2.11) ā $ (1.99) ā $ (1.90) ā DILUTED EPS: ā ā ā ā ā ā ā ā ā ā ā ā Adjusted income (loss) from continuing operations, net of tax - basic ā ā ā $ (741,110) ā $ (651,507) ā $ (490,082) ā Add: effect of reallocating undistributed earnings of unvested shareholders ā ā ā ā ā ā ā ā ā ā ā ā Adjusted income (loss) from continuing operations, net of tax - diluted ā ā ā $ (741,110) ā $ (651,507) ā $ (490,082) ā Income (loss) from discontinued operations, net of tax ā ā ā $ (12) ā $ (14,663) ā $ (43,519) ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares outstanding - basic ā ā ā 351,617 ā 334,397 ā 280,653 ā Add: dilutive effect of potential common shares ā ā ā ā ā ā ā ā ā ā ā ā Weighted-average number of shares outstanding - diluted ā ā ā ā 351,617 ā ā 334,397 ā ā 280,653 ā Earnings (losses) per share: ā ā ā ā ā ā ā ā ā ā ā ā Diluted from continuing operations ā ā ā $ (2.11) ā $ (1.95) ā $ (1.75) ā Diluted from discontinued operations ā ā ā ā ā (0.04) ā (0.15) ā Total Diluted ā ā ā $ (2.11) ā $ (1.99) ā $ (1.90) ā ā ā ā ā ā ā ā ā ā ā ā ā ā |
Potentially dilutive securities excluded as anti-dilutive | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) ā ā ā ā ā ā ā ā ā ā ā ā Potentially dilutive securities excluded as anti-dilutive ā ā ā ā 1,994 ā ā 4,341 ā ā 4,534 |
Supplemental Balance Sheet, I_2
Supplemental Balance Sheet, Income Statement and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Balance Sheet, Income Statement and Cash Flow Information | |
Accrued liabilities | ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Accrued compensation ā $ 97,003 ā $ 92,358 ā Deferred revenue and proceeds on insurance and asset sales ā 89,051 ā ā 149,266 ā Other taxes payable ā 31,472 ā ā 33,199 ā Workersā compensation liabilities ā 30,214 ā 16,316 ā Interest payable ā 51,316 ā 59,718 ā Litigation reserves ā 14,736 ā 24,926 ā Current liability to discontinued operations ā ā ā 2,445 ā Dividends declared and payable ā 7,832 ā 25,330 ā Other accrued liabilities ā 11,658 ā 14,354 ā ā ā $ 333,282 ā $ 417,912 ā |
Schedule of investment income (loss) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā 2019 2018 2017 ā (In thousands) ā Interest and dividend income ā ā $ 8,424 ā $ 4,957 ā $ 2,227 ā Gains (losses) on marketable securities ā ā 1,794 ā (14,456) ā (1,033) ā ā ā ā $ 10,218 ā $ (9,499) ā $ 1,194 ā |
Other, net | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) ā Losses (gains) on sales, disposals and involuntary conversions of long-lived assets ā ā ā $ 7,141 ā $ 11,789 ā $ 19,026 ā Litigation expenses and reserves ā ā ā 5,226 ā ā 9,939 ā ā 1,273 ā Foreign currency transaction losses (gains) ā ā ā 20,929 ā ā 4,156 ā ā 1,603 ā Other losses (gains) ā ā ā (72) ā ā 3,648 ā ā (7,022) ā ā ā ā ā $ 33,224 ā $ 29,532 ā $ 14,880 ā ā |
Schedule of changes in accumulated other comprehensive income (loss) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gains ā gains (losses) ā Defined ā ā ā ā ā ā ā ā (losses) on ā on available- ā benefit ā Foreign ā ā ā ā ā cash flow ā for-sale ā pension plan ā currency ā ā ā ā hedges securities items items Total ā ā (In thousands (1) ) As of January 1, 2018 ā $ (922) ā $ 9,144 ā $ (4,111) ā $ 7,074 ā $ 11,185 ā Other comprehensive income (loss) before reclassifications ā ā ā ā ā ā ā ā ā ā (31,962) ā ā (31,962) ā Amounts reclassified from accumulated other comprehensive income (loss) ā 430 ā ā ā ā ā 166 ā ā ā ā ā 596 ā Adoption of ASU No. 2016-01 ā ā ā (9,144) ā ā ā ā ā (9,144) ā Net other comprehensive income (loss) ā 430 ā (9,144) ā 166 ā (31,962) ā (40,510) ā As of December 31, 2018 ā $ (492) ā $ ā ā $ (3,945) ā $ (24,888) ā $ (29,325) ā (1) All amounts are net of tax. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized ā ā ā ā ā ā ā ā Gains ā gains (losses) ā Defined ā ā ā ā ā ā ā ā (losses) on ā on available- ā benefit ā Foreign ā ā ā ā ā cash flow ā for-sale ā pension plan ā currency ā ā ā ā hedges securities items items Total ā ā (In thousands (1) ) As of January 1, 2019 ā $ (492) ā $ ā ā $ (3,945) ā $ (24,888) ā $ (29,325) ā Other comprehensive income (loss) before reclassifications ā ā ā ā ā ā ā 16,943 ā 16,943 ā Amounts reclassified from accumulated other comprehensive income (loss) ā 427 ā ā ā 167 ā ā ā 594 ā Net other comprehensive income (loss) ā 427 ā ā ā 167 ā 16,943 ā 17,537 ā As of December 31, 2019 ā $ (65) ā $ ā ā $ (3,778) ā $ (7,945) ā $ (11,788) ā (1) All amounts are net of tax. ā |
Schedule of line items that were reclassified from net income | Line item in consolidated statement of income (loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) Impairments and other charges ā ā ā $ ā ā $ ā ā $ 970 Interest expense ā ā ā 567 ā 567 ā 613 General and administrative expenses ā ā ā 217 ā 216 ā 200 Total income (loss) from continuing operations before income tax ā ā ā (784) ā (783) ā (1,783) Tax expense (benefit) ā ā ā ā (190) ā ā (187) ā ā (315) Reclassification adjustment for (gains)/ losses included in net income (loss) ā ā ā $ (594) ā $ (596) ā $ (1,468) ā |
Supplemental cash flow information | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Cash paid for income taxes ā $ 6,553 ā $ 11,383 ā $ 20,581 ā Cash paid for interest, net of capitalized interest ā $ 174,357 ā $ 202,803 ā $ 191,986 ā Net change in accounts payable related to capital expenditures ā $ (7,624) ā $ (8,556) ā $ (35,227) ā Non-cash increase in assets attributable to redeemable noncontrolling interest in subsidiary ā $ ā ā $ 43,928 ā $ 142,875 ā Acquisitions of businesses: ā ā ā ā ā ā ā ā ā ā Fair value of assets acquired ā $ 2,929 ā $ 48,053 ā $ 280,709 ā Goodwill ā ā ā ā ā 11,436 ā ā 5,690 ā Liabilities assumed ā ā ā (34,489) ā (55,742) ā Share issuance as consideration (non-cash financing activity) ā ā ā ā ā ā ā ā (178,993) ā Cash paid for acquisitions of businesses ā 2,929 ā 25,000 ā 51,664 ā Cash and restricted cash acquired in acquisitions of businesses ā ā ā ā ā (4,141) ā ā (63,983) ā Cash (acquired in) paid for acquisitions of businesses, net ā $ 2,929 ā $ 20,859 ā $ (12,319) ā |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Financial Information | |
Unaudited Quarterly Financial Information | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā Quarter Ended ā March 31, June 30, September 30, December 31, ā ā (In thousands, except per share amounts) Operating revenues ā $ 799,640 ā $ 771,406 ā $ 758,076 ā $ 714,261 ā Income (loss) from continuing operations, net of tax ā $ (103,376) ā $ (192,801) ā $ (99,788) ā $ (284,533) ā Income (loss) from discontinued operations, net of tax ā (157) ā (34) ā 157 ā 22 ā Net income (loss) ā ā (103,533) ā ā (192,835) ā ā (99,631) ā ā (284,511) ā Less: Net (income) loss attributable to noncontrolling interest ā (14,176) ā (10,729) ā (19,297) ā 21,827 ā Net income (loss) attributable to Nabors ā $ (117,709) ā $ (203,564) ā $ (118,928) ā $ (262,684) ā Less: Preferred stock dividend ā (4,313) ā (4,312) ā (4,310) ā (4,309) ā Net income (loss) attributable to Nabors common shareholders ā $ (122,022) ā $ (207,876) ā $ (123,238) ā $ (266,993) ā Earnings (losses) per share: (1) ā ā ā ā ā ā ā ā ā ā ā ā ā Basic from continuing operations ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā Basic from discontinued operations ā ā ā ā ā ā ā ā ā Total Basic ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā Diluted from continuing operations ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā Diluted from discontinued operations ā ā ā ā ā ā ā ā ā Total Diluted ā $ (0.36) ā $ (0.61) ā $ (0.37) ā $ (0.77) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā Quarter Ended ā March 31, June 30, September 30, December 31, ā ā (In thousands, except per share amounts) ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ 734,194 ā $ 761,920 ā $ 779,425 ā $ 782,080 ā Income (loss) from continuing operations, net of tax ā $ (143,587) ā $ (195,215) ā $ (93,710) ā $ (165,551) ā Income (loss) from discontinued operations, net of tax ā (75) ā (584) ā (13,933) ā (71) ā Net income (loss) ā ā (143,662) ā ā (195,799) ā ā (107,643) ā ā (165,622) ā Less: Net (income) loss attributable to noncontrolling interest ā (539) ā (2,953) ā (6,934) ā (17,796) ā Net income (loss) attributable to Nabors ā $ (144,201) ā $ (198,752) ā $ (114,577) ā $ (183,418) ā Less: Preferred stock dividend ā ā ā (3,680) ā (4,313) ā (4,312) ā Net income (loss) attributable to Nabors common shareholders ā $ (144,201) ā $ (202,432) ā $ (118,890) ā $ (187,730) ā Earnings (losses) per share: (1) ā ā ā ā ā ā ā ā ā ā ā ā ā Basic from continuing operations ā $ (0.46) ā $ (0.61) ā $ (0.31) ā $ (0.55) ā Basic from discontinued operations ā ā ā ā ā (0.04) ā ā ā Total Basic ā $ (0.46) ā $ (0.61) ā $ (0.35) ā $ (0.55) ā Diluted from continuing operations ā $ (0.46) ā $ (0.61) ā $ (0.31) ā $ (0.55) ā Diluted from discontinued operations ā ā ā ā ā (0.04) ā ā ā Total Diluted ā $ (0.46) ā $ (0.61) ā $ (0.35) ā $ (0.55) ā (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. (2) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Financial information with respect to operating segments | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) ā Operating revenues: ā ā ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā ā ā $ 1,240,936 ā $ 1,083,227 ā $ 805,223 ā Canada Drilling ā ā ā 68,274 ā 105,000 ā 82,929 ā International Drilling ā ā ā 1,324,142 ā 1,469,038 ā 1,474,060 ā Drilling Solutions ā ā ā 252,790 ā 250,242 ā 140,701 ā Rig Technologies ā ā ā 260,226 ā 270,988 ā 234,542 ā Other reconciling items (1) ā ā ā (102,985) ā (120,876) ā (173,170) ā Total ā ā ā $ 3,043,383 ā $ 3,057,619 ā $ 2,564,285 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) Adjusted operating income (loss): (2) ā ā ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā ā ā $ 64,313 ā $ (21,298) ā $ (213,877) ā Canada Drilling ā ā ā (14,483) ā (6,166) ā (22,262) ā International Drilling ā ā ā (8,903) ā 74,221 ā 108,428 ā Drilling Solutions ā ā ā 59,465 ā 37,626 ā 16,738 ā Rig Technologies ā ā ā (11,247) ā (25,762) ā (30,964) ā Total segment adjusted operating income (loss) ā ā ā $ 89,145 ā $ 58,621 ā $ (141,937) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā ā ā 2019 2018 2017 ā ā (In thousands) Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: ā ā ā ā ā ā ā ā ā ā ā ā Total segment adjusted operating income (loss) (2) ā ā ā $ 89,145 ā $ 58,621 ā $ (141,937) ā Other reconciling items (3) ā ā ā (160,274) ā (166,815) ā (157,043) ā Earnings (losses) from unconsolidated affiliates ā ā ā ā (5) ā ā 1 ā ā 7 ā Investment income (loss) ā ā ā 10,218 ā ā (9,499) ā ā 1,194 ā Interest expense ā ā ā ā (204,311) ā ā (227,124) ā ā (222,889) ā Impairments and other charges ā ā ā ā (290,471) ā ā (144,446) ā ā (44,536) ā Other, net ā ā ā ā (33,224) ā ā (29,532) ā ā (14,880) ā Income (loss) from continuing operations before income taxes ā ā ā $ (588,922) ā $ (518,794) ā $ (580,084) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Depreciation and amortization ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā $ 419,680 ā $ 394,586 ā $ 375,171 ā Canada Drilling ā 29,766 ā 37,172 ā 39,597 ā International Drilling ā 372,883 ā 383,227 ā 400,753 ā Drilling Solutions ā 32,289 ā 31,037 ā 16,188 ā Rig Technologies ā 12,715 ā 16,387 ā 11,530 ā Other reconciling items (3) ā 8,758 ā 4,461 ā (296) ā Total ā $ 876,091 ā $ 866,870 ā $ 842,943 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Capital expenditures: ā ā ā ā ā ā ā ā ā ā U.S. Drilling ā $ 184,705 ā $ 222,338 ā $ 330,875 ā Canada Drilling ā 5,020 ā 12,981 ā 17,197 ā International Drilling ā 209,728 ā 172,565 ā 159,817 ā Drilling Solutions ā 23,598 ā 30,709 ā 35,617 ā Rig Technologies ā 6,592 ā 12,250 ā 4,715 ā Other reconciling items (3) ā (5,676) ā 2,592 ā (9,030) ā Total ā $ 423,967 ā $ 453,435 ā $ 539,191 ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (In thousands) Total assets: ā ā ā ā ā ā ā U.S. Drilling ā $ 2,369,200 ā $ 2,982,974 ā Canada Drilling ā 202,706 ā 252,817 ā International Drilling ā 2,979,494 ā 3,320,347 ā Drilling Solutions ā 218,004 ā 281,078 ā Rig Technologies ā 324,523 ā 401,044 ā Other reconciling items (3) ā 666,731 ā 615,684 ā Total ā $ 6,760,658 ā $ 7,853,944 ā (1) Represents the elimination of inter-segment transactions. ā (2) Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), impairments and other charges and other, net. 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. ā (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 | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā ā (In thousands) Operating revenues ā ā ā ā ā ā ā ā ā ā U.S. ā $ 1,554,442 ā $ 1,347,448 ā $ 973,464 ā Outside the U.S. ā 1,488,941 ā 1,710,171 ā 1,590,821 ā ā ā $ 3,043,383 ā $ 3,057,619 ā $ 2,564,285 ā Property, plant and equipment, net: ā ā ā ā ā ā ā ā ā ā U.S. ā $ 2,470,579 ā $ 2,892,910 ā $ 3,163,425 ā Outside the U.S. ā 2,459,970 ā 2,574,960 ā 2,946,140 ā ā ā $ 4,930,549 ā $ 5,467,870 ā $ 6,109,565 ā Goodwill: ā ā ā ā ā ā ā ā ā ā U.S. ā $ 13,430 ā $ 65,633 ā $ 54,198 ā Outside the U.S. ā 14,950 ā 118,281 ā 119,028 ā ā ā $ 28,380 ā $ 183,914 ā $ 173,226 ā |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition | |
Summary of revenue is disaggregation by geographical region | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, 2019 ā ā U.S. Drilling ā Canada Drilling ā International Drilling ā Drilling Solutions ā Rig Technologies ā Other ā Total ā ā (In thousands) Lower 48 ā $ 1,021,879 ā $ ā ā $ ā ā $ 170,639 ā $ 172,559 ā $ ā ā $ 1,365,077 U.S. Offshore Gulf of Mexico ā 156,931 ā ā ā ā ā 13,331 ā ā ā ā ā ā 170,262 Alaska ā 62,126 ā ā ā ā ā 4,787 ā 986 ā ā ā ā 67,899 Canada ā ā ā 68,274 ā ā ā 1,749 ā 8,852 ā ā ā ā 78,875 Middle East & Asia ā ā ā ā ā 765,493 ā 43,941 ā 56,455 ā ā ā ā 865,889 Latin America ā ā ā ā ā 355,189 ā 15,558 ā 2,318 ā ā ā ā 373,065 Europe, Africa & CIS ā ā ā ā ā 203,460 ā 2,785 ā 19,056 ā ā ā ā 225,301 Eliminations & other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (102,985) ā (102,985) Total ā $ 1,240,936 ā $ 68,274 ā $ 1,324,142 ā $ 252,790 ā $ 260,226 ā $ (102,985) ā $ 3,043,383 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, 2018 ā ā U.S. Drilling ā Canada Drilling ā International Drilling ā Drilling Solutions ā Rig Technologies ā Other ā Total ā ā (In thousands) Lower 48 ā $ 910,819 ā $ ā ā $ ā ā $ 173,219 ā $ 188,550 ā $ ā ā $ 1,272,588 U.S. Offshore Gulf of Mexico ā 122,946 ā ā ā ā ā 13,776 ā ā ā ā ā ā 136,722 Alaska ā 49,462 ā ā ā ā ā 3,670 ā 777 ā ā ā ā 53,909 Canada ā ā ā 105,000 ā ā ā 5,849 ā 29,682 ā ā ā ā 140,531 Middle East & Asia ā ā ā ā ā 888,500 ā 35,486 ā 26,236 ā ā ā ā 950,222 Latin America ā ā ā ā ā 360,385 ā 15,350 ā 8,514 ā ā ā ā 384,249 Europe, Africa & CIS ā ā ā ā ā 220,153 ā 2,892 ā 17,229 ā ā ā ā 240,274 Eliminations & other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (120,876) ā (120,876) Total ā $ 1,083,227 ā $ 105,000 ā $ 1,469,038 ā $ 250,242 ā $ 270,988 ā $ (120,876) ā $ 3,057,619 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, 2017 ā ā U.S. Drilling ā Canada Drilling ā International Drilling ā Drilling Solutions ā Rig Technologies ā Other ā Total ā ā (In thousands) Lower 48 ā $ 681,669 ā $ ā ā $ ā ā $ 118,574 ā $ 211,609 ā $ ā ā $ 1,011,852 U.S. Offshore Gulf of Mexico ā 75,994 ā ā ā ā ā 1,021 ā ā ā ā ā ā 77,015 Alaska ā 47,560 ā ā ā ā ā 3,925 ā 623 ā ā ā ā 52,108 Canada ā ā ā 82,929 ā ā ā 6,054 ā 7,618 ā ā ā ā 96,601 Middle East & Asia ā ā ā ā ā 875,175 ā 7,397 ā 13,493 ā ā ā ā 896,065 Latin America ā ā ā ā ā 388,235 ā 3,266 ā 392 ā ā ā ā 391,893 Europe, Africa & CIS ā ā ā ā ā 210,650 ā 464 ā 807 ā ā ā ā 211,921 Eliminations & other ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (173,170) ā (173,170) Total ā $ 805,223 ā $ 82,929 ā $ 1,474,060 ā $ 140,701 ā $ 234,542 ā $ (173,170) ā $ 2,564,285 |
Summary of contract assets, current and long-term contract liabilities | The opening and closing balances of our receivables, contract assets and current and long-term contract liabilities are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Contract ā Contract ā Contract ā Contract ā ā Contract ā Assets ā Assets ā Liabilities ā Liabilities ā Receivables (Current) (Long-term) (Current) (Long-term) ā ā (In millions) As of December 31, 2018 ā $ 791.2 ā $ 55.8 ā $ 32.3 ā $ 116.7 ā $ 69.7 As of December 31, 2019 ā $ 507.0 ā $ 48.6 ā $ 24.9 ā $ 66.8 ā $ 70.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Lease Position | ā ā ā ā ā ā ā ā December 31, ā ā ā 2019 ā Classification on the Balance Sheet ā (In thousands) Assets ā ā ā ā Operating lease assets Other long-term assets ā $ 46,647 Total lease assets ā ā $ 46,647 ā ā ā ā ā Liabilities ā ā ā ā Current liabilities: ā ā ā ā Operating lease liabilities Current lease liabilities ā $ 13,479 Noncurrent liabilities: ā ā ā ā Operating lease liabilities Other long-term liabilities ā $ 33,396 Total lease liabilities ā ā $ 46,875 |
Lease Costs | ā ā ā ā ā ā ā ā ā ā Year Ended ā ā December 31, ā ā 2019 ā (In thousands) Operating lease cost ā ā $ 16,154 ā Short-term lease cost ā ā 2,568 ā Variable lease cost ā ā 605 ā Total lease cost ā ā $ 19,327 ā |
Other Information | ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā ā (In thousands) Cash paid for amounts included in the measurement of lease liabilities: ā ā ā Operating cash flows for operating leases ā $ 16,154 ā ā ā ā Right of use assets obtained in exchange for lease obligations: ā ā ā Operating leases ā $ 17,852 |
Lease Terms and Discount Rates | ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā ā 2019 ā ā ā ā ā ā Weighted-average remaining lease term - operating leases ā ā ā 7.13 ā Weighted-average discount rate - operating leases ā ā ā 5.97% ā |
Undiscounted Cash Flows | ā ā ā ā ā ā ā December 31, 2019 ā (In thousands) 2020 ā $ 15,586 ā 2021 ā 10,344 ā 2022 ā 7,099 ā 2023 ā 4,816 ā 2024 ā 2,577 ā Thereafter ā 17,649 ā Total undiscounted lease liability ā ā 58,071 ā Less: amount of lease payments representing interest ā ā (11,196) ā Long-term lease obligations ā $ 46,875 ā |
Minimum rental commitments under non cancellable operating leases | ā ā ā ā ā ā December 31, 2018 ā (In thousands) 2019 ā $ 10,701 2020 ā 7,104 2021 ā 3,774 2022 ā 2,356 2023 ā 1,538 Thereafter ā 7,482 Total minimum lease payments ā $ 32,955 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Consolidating Financial Information | |
Condensed Consolidating Balance Sheets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) ā ASSETS ā Current assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 319 ā $ 38 ā $ 435,633 ā $ ā ā $ 435,990 ā Short-term investments ā ā ā ā ā 16,506 ā ā ā 16,506 ā Accounts receivable, net ā ā ā ā ā 453,042 ā ā ā 453,042 ā Inventory, net ā ā ā ā ā 176,341 ā ā ā 176,341 ā Assets held for sale ā ā ā ā ā 2,530 ā ā ā 2,530 ā Other current assets ā 50 ā ā ā 164,207 ā ā ā 164,257 ā Total current assets ā 369 ā 38 ā 1,248,259 ā ā ā 1,248,666 ā Property, plant and equipment, net ā ā ā ā ā 4,930,549 ā ā ā 4,930,549 ā Goodwill ā ā ā ā ā 28,380 ā ā ā 28,380 ā Intercompany receivables ā 51 ā ā ā 2,611 ā (2,662) ā ā ā Investment in consolidated affiliates ā ā 2,001,607 ā ā 5,780,656 ā ā 4,226,017 ā ā (12,008,280) ā ā ā ā Deferred income taxes ā ā ā ā ā 431,441 ā ā 305,844 ā ā (431,441) ā ā 305,844 ā Other long-term assets ā ā ā 99 ā 254,445 ā (7,325) ā 247,219 ā Total assets ā $ 2,002,027 ā $ 6,212,234 ā $ 10,996,105 ā $ (12,449,708) ā $ 6,760,658 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā LIABILITIES AND EQUITY ā Current liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current portion of debt ā $ ā ā $ ā ā $ ā ā $ ā ā $ ā ā Trade accounts payable ā 128 ā 1 ā 295,030 ā ā ā 295,159 ā Accrued liabilities ā 8,579 ā 51,701 ā 273,002 ā ā ā 333,282 ā Income taxes payable ā ā ā ā ā 14,628 ā ā ā 14,628 ā Current lease liabilities ā ā ā ā ā 13,479 ā ā ā 13,479 ā Total current liabilities ā 8,707 ā 51,702 ā 596,139 ā ā ā 656,548 ā Long-term debt ā ā ā 3,340,545 ā ā ā (7,325) ā 3,333,220 ā Other long-term liabilities ā ā ā 29,331 ā 262,853 ā ā ā 292,184 ā Deferred income taxes ā ā ā ā ā 434,590 ā (431,441) ā 3,149 ā Intercompany payable ā 10,508 ā 231,759 ā (239,605) ā (2,662) ā ā ā Total liabilities ā 19,215 ā 3,653,337 ā 1,053,977 ā (441,428) ā 4,285,101 ā Redeemable noncontrolling interest in subsidiary ā ā ā ā ā 425,392 ā ā ā 425,392 ā Shareholdersā equity ā 1,982,812 ā 2,558,897 ā 9,449,382 ā (12,008,280) ā 1,982,811 ā Noncontrolling interest ā ā ā ā ā 67,354 ā ā ā 67,354 ā Total equity ā 1,982,812 ā 2,558,897 ā 9,516,736 ā (12,008,280) ā 2,050,165 ā Total liabilities and equity ā $ 2,002,027 ā $ 6,212,234 ā $ 10,996,105 ā $ (12,449,708) ā $ 6,760,658 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2018 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) ā ASSETS ā Current assets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Cash and cash equivalents ā $ 474 ā $ 42 ā $ 447,250 ā $ ā ā $ 447,766 ā Short-term investments ā ā ā ā ā 34,036 ā ā ā 34,036 ā Accounts receivable, net ā ā ā ā ā 756,320 ā ā ā 756,320 ā Inventory, net ā ā ā ā ā 165,587 ā ā ā 165,587 ā Assets held for sale ā ā ā ā ā 12,250 ā ā ā 12,250 ā Other current assets ā 50 ā 433 ā 177,121 ā ā ā 177,604 ā Total current assets ā 524 ā 475 ā 1,592,564 ā ā ā 1,593,563 ā Property, plant and equipment, net ā ā ā ā ā 5,467,870 ā ā ā 5,467,870 ā Goodwill ā ā ā ā ā 183,914 ā ā ā 183,914 ā Intercompany receivables ā 95,946 ā 218,129 ā 2,611 ā (316,686) ā ā ā Investment in consolidated affiliates ā ā 2,658,827 ā ā 5,494,886 ā ā 4,079,269 ā ā (12,232,982) ā ā ā ā Deferred income taxes ā ā ā ā ā 388,089 ā ā 345,091 ā ā (388,089) ā ā 345,091 ā Other long-term assets ā ā ā 142 ā 277,689 ā (14,325) ā 263,506 ā Total assets ā $ 2,755,297 ā $ 6,101,721 ā $ 11,949,008 ā $ (12,952,082) ā $ 7,853,944 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā LIABILITIES AND EQUITY ā Current liabilities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Current portion of debt ā $ ā ā $ ā ā $ 561 ā $ ā ā $ 561 ā Trade accounts payable ā 132 ā 14 ā 392,697 ā ā ā 392,843 ā Accrued liabilities ā 28,815 ā 62,830 ā 326,267 ā ā ā 417,912 ā Income taxes payable ā ā ā ā ā 20,761 ā ā ā 20,761 ā Total current liabilities ā 28,947 ā 62,844 ā 740,286 ā ā ā 832,077 ā Long-term debt ā ā ā 3,600,209 ā ā ā (14,325) ā 3,585,884 ā Other long-term liabilities ā ā ā 29,331 ā 245,154 ā ā ā 274,485 ā Deferred income taxes ā ā ā ā ā 394,400 ā (388,089) ā 6,311 ā Intercompany payable ā 25,500 ā ā ā 291,186 ā (316,686) ā ā ā Total liabilities ā 54,447 ā 3,692,384 ā 1,671,026 ā (719,100) ā 4,698,757 ā Redeemable noncontrolling interest in subsidiary ā ā ā ā ā 404,861 ā ā ā 404,861 ā Shareholdersā equity ā 2,700,850 ā 2,409,337 ā 9,823,645 ā (12,232,982) ā 2,700,850 ā Noncontrolling interest ā ā ā ā ā 49,476 ā ā ā 49,476 ā Total equity ā 2,700,850 ā 2,409,337 ā 9,873,121 ā (12,232,982) ā 2,750,326 ā Total liabilities and equity ā $ 2,755,297 ā $ 6,101,721 ā $ 11,949,008 ā $ (12,952,082) ā $ 7,853,944 ā |
Condensed Consolidating Statements of Income (Loss) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Revenues and other income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ ā ā $ ā ā $ 3,043,383 ā $ ā ā $ 3,043,383 ā Earnings (losses) from unconsolidated affiliates ā ā ā ā ā ā ā ā (5) ā ā ā ā ā (5) ā Earnings (losses) from consolidated affiliates ā (693,450) ā 285,612 ā 140,474 ā 267,364 ā ā ā Investment income (loss) ā ā ā ā ā 12,330 ā (2,112) ā 10,218 ā Total revenues and other income ā (693,450) ā 285,612 ā 3,196,182 ā 265,252 ā 3,053,596 ā Costs and other deductions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Direct costs ā ā ā 6 ā 1,929,325 ā ā ā 1,929,331 ā General and administrative expenses ā 8,255 ā 673 ā 251,375 ā (1,572) ā 258,731 ā Research and engineering ā ā ā ā ā 50,359 ā ā ā 50,359 ā Depreciation and amortization ā ā ā 125 ā 875,966 ā ā ā 876,091 ā Interest expense, net ā ā ā 204,963 ā (652) ā ā ā 204,311 ā Impairments and other charges ā ā ā ā ā ā ā ā 290,471 ā ā ā ā ā 290,471 ā Other, net ā ā 1,043 ā ā (17,277) ā ā 47,886 ā ā 1,572 ā 33,224 ā Intercompany interest expense, net ā 137 ā ā ā (137) ā ā ā ā ā Total costs and other deductions ā 9,435 ā 188,490 ā 3,444,593 ā ā ā 3,642,518 ā Income (loss) from continuing operations before income taxes ā (702,885) ā 97,122 ā (248,411) ā 265,252 ā (588,922) ā Income tax expense (benefit) ā ā ā (43,352) ā 134,928 ā ā ā 91,576 ā Income (loss) from continuing operations, net of tax ā (702,885) ā 140,474 ā (383,339) ā 265,252 ā (680,498) ā Income (loss) from discontinued operations, net of tax ā ā ā ā ā (12) ā ā ā (12) ā Net income (loss) ā (702,885) ā 140,474 ā (383,351) ā 265,252 ā (680,510) ā Less: Net (income) loss attributable to noncontrolling interest ā ā ā ā ā (22,375) ā ā ā (22,375) ā Net income (loss) attributable to Nabors ā $ (702,885) ā $ 140,474 ā $ (405,726) ā $ 265,252 ā $ (702,885) ā Less: Preferred stock dividend ā (17,244) ā ā ā ā ā ā ā (17,244) ā Net income (loss) attributable to Nabors common shareholders ā $ (720,129) ā $ 140,474 ā $ (405,726) ā $ 265,252 ā $ (720,129) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenues and other income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ ā ā $ ā ā $ 3,057,619 ā $ ā ā $ 3,057,619 ā Earnings (losses) from unconsolidated affiliates ā ā ā ā ā 1 ā ā ā 1 ā Earnings (losses) from consolidated affiliates ā (629,060) ā 218,539 ā 35,279 ā 375,242 ā ā ā Investment income (loss) ā 2 ā ā ā 2,984 ā (12,485) ā (9,499) ā Total revenues and other income ā ā (629,058) ā ā 218,539 ā ā 3,095,883 ā ā 362,757 ā ā 3,048,121 ā Costs and other deductions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Direct costs ā ā ā ā ā ā ā ā 1,976,974 ā ā ā ā ā 1,976,974 ā General and administrative expenses ā ā 9,725 ā ā 635 ā ā 256,145 ā ā (683) ā ā 265,822 ā Research and engineering ā ā ā ā ā ā ā ā 56,147 ā ā ā ā ā 56,147 ā Depreciation and amortization ā ā ā ā ā 125 ā ā 866,745 ā ā ā ā ā 866,870 ā Interest expense, net ā ā ā ā ā 231,971 ā ā (4,847) ā ā ā ā ā 227,124 ā Impairments and other charges ā ā ā ā ā 5,269 ā ā 139,177 ā ā ā ā ā 144,446 ā Other, net ā ā 1,803 ā ā ā ā ā 27,046 ā ā 683 ā ā 29,532 ā Intercompany interest expense ā ā 362 ā ā ā ā ā (362) ā ā ā ā ā ā ā Total costs and other deductions ā 11,890 ā 238,000 ā 3,317,025 ā ā ā 3,566,915 ā Income (loss) from continuing operations before income taxes ā (640,948) ā (19,461) ā (221,142) ā 362,757 ā (518,794) ā Income tax expense (benefit) ā ā ā (54,740) ā 134,009 ā ā ā 79,269 ā Income (loss) from continuing operations, net of tax ā (640,948) ā 35,279 ā (355,151) ā 362,757 ā (598,063) ā Income (loss) from discontinued operations, net of tax ā ā ā ā ā (14,663) ā ā ā (14,663) ā Net income (loss) ā (640,948) ā 35,279 ā (369,814) ā 362,757 ā (612,726) ā Less: Net (income) loss attributable to noncontrolling interest ā ā ā ā ā (28,222) ā ā ā (28,222) ā Net income (loss) attributable to Nabors ā $ (640,948) ā $ 35,279 ā $ (398,036) ā $ 362,757 ā $ (640,948) ā Less: Preferred stock dividend ā (12,305) ā ā ā ā ā ā ā (12,305) ā Net income (loss) attributable to Nabors common shareholders ā $ (653,253) ā $ 35,279 ā $ (398,036) ā $ 362,757 ā $ (653,253) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2017 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Revenues and other income: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Operating revenues ā $ ā ā $ ā ā $ 2,564,285 ā $ ā ā $ 2,564,285 ā Earnings (losses) from unconsolidated affiliates ā ā ā ā ā ā ā ā 7 ā ā ā ā ā 7 ā Earnings (losses) from consolidated affiliates ā (528,180) ā 18,380 ā (343,233) ā 853,033 ā ā ā Investment income (loss) ā 17 ā 63 ā 13,031 ā (11,917) ā 1,194 ā Total revenues and other income ā (528,163) ā 18,443 ā 2,234,090 ā 841,116 ā 2,565,486 ā Costs and other deductions: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Direct costs ā ā ā ā ā 1,718,069 ā ā ā 1,718,069 ā General and administrative expenses ā 10,995 ā 715 ā 240,139 ā (665) ā 251,184 ā Research and engineering ā ā ā ā ā 51,069 ā ā ā 51,069 ā Depreciation and amortization ā ā ā 125 ā 842,818 ā ā ā 842,943 ā Interest expense, net ā ā ā 232,103 ā (9,214) ā ā ā 222,889 ā Impairments and other charges ā ā ā ā ā ā ā ā 44,536 ā ā ā ā ā 44,536 ā Other, net ā ā 7,662 ā ā 19,033 ā ā (12,480) ā ā 665 ā 14,880 ā Intercompany interest expense, net ā (9) ā ā ā 9 ā ā ā ā ā Total costs and other deductions ā 18,648 ā 251,976 ā 2,874,946 ā ā ā 3,145,570 ā Income (loss) from continuing operations before income taxes ā (546,811) ā (233,533) ā (640,856) ā 841,116 ā (580,084) ā Income tax expense (benefit) ā ā ā 109,700 ā (192,670) ā ā ā (82,970) ā Income (loss) from continuing operations, net of tax ā (546,811) ā (343,233) ā (448,186) ā 841,116 ā (497,114) ā Income (loss) from discontinued operations, net of tax ā ā ā ā ā (43,519) ā ā ā (43,519) ā Net income (loss) ā (546,811) ā (343,233) ā (491,705) ā 841,116 ā (540,633) ā Less: Net (income) loss attributable to noncontrolling interest ā ā ā ā ā (6,178) ā ā ā (6,178) ā Net income (loss) attributable to Nabors ā $ (546,811) ā $ (343,233) ā $ (497,883) ā $ 841,116 ā $ (546,811) ā Less: Preferred stock dividend ā ā ā ā ā ā ā ā ā ā ā Net income (loss) attributable to Nabors common shareholders ā $ (546,811) ā $ (343,233) ā $ (497,883) ā $ 841,116 ā $ (546,811) ā |
Condensed Consolidating Statements of Comprehensive Income (Loss) | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net income (loss) attributable to Nabors ā $ (702,885) ā $ 140,474 ā $ (405,726) ā $ 265,252 ā $ (702,885) ā Other comprehensive income (loss) before tax: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Translation adjustment attributable to Nabors ā 16,943 ā (3) ā 16,943 ā (16,940) ā 16,943 ā Pension liability amortization and adjustment ā 217 ā 217 ā 434 ā (651) ā 217 ā Unrealized gains (losses) and amortization on cash flow hedges ā 567 ā 567 ā 567 ā (1,134) ā 567 ā Other comprehensive income (loss) before tax ā 17,727 ā 781 ā 17,944 ā (18,725) ā 17,727 ā Income tax expense (benefit) related to items of other comprehensive income (loss) ā 190 ā 190 ā 380 ā (570) ā 190 ā Other comprehensive income (loss), net of tax ā 17,537 ā 591 ā 17,564 ā (18,155) ā 17,537 ā Comprehensive income (loss) attributable to Nabors ā (685,348) ā 141,065 ā (388,162) ā 247,097 ā (685,348) ā Net income (loss) attributable to noncontrolling interest ā ā ā ā ā 22,375 ā ā ā 22,375 ā Translation adjustment attributable to noncontrolling interest ā ā ā ā ā 55 ā ā ā 55 ā Comprehensive income (loss) attributable to noncontrolling interest ā ā ā ā ā 22,430 ā ā ā 22,430 ā Comprehensive income (loss) ā $ (685,348) ā $ 141,065 ā $ (365,732) ā $ 247,097 ā $ (662,918) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net income (loss) attributable to Nabors ā $ (640,948) ā $ 35,279 ā $ (398,036) ā $ 362,757 ā $ (640,948) ā Other comprehensive income (loss) before tax: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Translation adjustment attributable to Nabors ā (31,962) ā 4 ā (31,962) ā 31,958 ā (31,962) ā Pension liability amortization and adjustment ā 216 ā 216 ā 432 ā (648) ā 216 ā Unrealized gains (losses) and amortization on cash flow hedges ā 567 ā 567 ā 567 ā (1,134) ā 567 ā Adoption of ASU No. 2016-01 ā (9,144) ā ā ā (9,144) ā 9,144 ā (9,144) ā Other comprehensive income (loss) before tax ā (40,323) ā 787 ā (40,107) ā 39,320 ā (40,323) ā Income tax expense (benefit) related to items of other comprehensive income (loss) ā 187 ā 187 ā 374 ā (561) ā 187 ā Other comprehensive income (loss), net of tax ā (40,510) ā 600 ā (40,481) ā 39,881 ā (40,510) ā Comprehensive income (loss) attributable to Nabors ā (681,458) ā 35,879 ā (438,517) ā 402,638 ā (681,458) ā Net income (loss) attributable to noncontrolling interest ā ā ā ā ā 28,222 ā ā ā 28,222 ā Translation adjustment attributable to noncontrolling interest ā ā ā ā ā (251) ā ā ā (251) ā Comprehensive income (loss) attributable to noncontrolling interest ā ā ā ā ā 27,971 ā ā ā 27,971 ā Comprehensive income (loss) ā $ (681,458) ā $ 35,879 ā $ (410,546) ā $ 402,638 ā $ (653,487) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2017 ā ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net income (loss) attributable to Nabors ā $ (546,811) ā $ (343,233) ā $ (497,883) ā $ 841,116 ā $ (546,811) ā Other comprehensive income (loss) before tax ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Translation adjustment attributable to Nabors ā 28,372 ā ā ā 28,372 ā (28,372) ā 28,372 ā Unrealized gains (losses) on marketable securities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Unrealized gains (losses) on marketable securities ā (6,061) ā ā ā (6,061) ā 6,061 ā (6,061) ā Less: reclassification adjustment for (gains) losses included in net income (loss) ā 970 ā ā ā 970 ā (970) ā 970 ā Unrealized gains (losses) on marketable securities ā (5,091) ā ā ā (5,091) ā 5,091 ā (5,091) ā Pension liability amortization and adjustment ā (275) ā (275) ā (550) ā 825 ā (275) ā Unrealized gains (losses) and amortization on cash flow hedges ā 613 ā 613 ā 613 ā (1,226) ā 613 ā Other comprehensive income (loss) before tax ā 23,619 ā 338 ā 23,344 ā (23,682) ā 23,619 ā Income tax expense (benefit) related to items of other comprehensive income (loss) ā 315 ā 315 ā 630 ā (945) ā 315 ā Other comprehensive income (loss), net of tax ā 23,304 ā 23 ā 22,714 ā (22,737) ā 23,304 ā Comprehensive income (loss) attributable to Nabors ā (523,507) ā (343,210) ā (475,169) ā 818,379 ā (523,507) ā Net income (loss) attributable to noncontrolling interest ā ā ā ā ā 6,178 ā ā ā 6,178 ā Translation adjustment attributable to noncontrolling interest ā ā ā ā ā 282 ā ā ā 282 ā Comprehensive income (loss) attributable to noncontrolling interest ā ā ā ā ā 6,460 ā ā ā 6,460 ā Comprehensive income (loss) ā $ (523,507) ā $ (343,210) ā $ (468,709) ā $ 818,379 ā $ (517,047) ā |
Condensed Consolidating Statements of Cash Flows | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2019 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) Net cash provided by (used for) operating activities ā $ 79,910 ā $ (179,265) ā $ 848,271 ā $ (64,358) ā $ 684,558 ā Cash flows from investing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Purchases of investments ā ā ā ā ā ā ā ā (4,323) ā ā ā ā ā (4,323) ā Sales and maturities of investments ā ā ā ā ā ā ā ā 18,849 ā ā ā ā ā 18,849 ā Cash paid for acquisitions of businesses, net of cash acquired ā ā ā ā ā (2,929) ā ā ā (2,929) ā Cash paid for investments in consolidated affiliates ā ā ā ā ā (8,500) ā 8,500 ā ā ā Capital expenditures ā ā ā ā ā (427,741) ā ā ā (427,741) ā Proceeds from sales of assets and insurance claims ā ā ā ā ā ā 60,288 ā ā ā 60,288 ā Change in intercompany balances ā ā ā 449,888 ā (449,888) ā ā ā ā ā Net cash provided by (used for) investing activities ā ā ā 449,888 ā (814,244) ā 8,500 ā (355,856) ā Cash flows from financing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Reduction of long-term debt ā ā ā (455,360) ā ā ā ā ā (455,360) ā Debt issuance costs ā ā ā (1,767) ā ā ā ā ā (1,767) ā Proceeds from revolving credit facilities ā ā ā ā 1,050,000 ā ā ā ā ā 1,050,000 ā Reduction in revolving credit facilities ā ā ā ā (865,000) ā ā ā ā ā (865,000) ā Proceeds from (payments for) short-term borrowings ā ā ā ā ā (561) ā ā ā (561) ā Proceeds from issuance of common shares, net of issuance costs ā 6 ā ā ā (6) ā ā ā ā ā Dividends to common and preferred shareholders ā ā (54,347) ā ā ā 12 ā 4,752 ā (49,583) ā Distributions to noncontrolling interest ā ā ā ā ā (4,552) ā ā ā (4,552) ā Proceeds from issuance of intercompany debt ā ā 6,600 ā ā ā (6,600) ā ā ā ā ā Paydown of intercompany debt ā ā (27,700) ā (7,000) ā 34,700 ā ā ā ā ā Proceeds from parent contributions ā ā ā 8,500 ā ā ā (8,500) ā ā ā Distribution from subsidiary to parent ā ā ā ā ā (59,606) ā 59,606 ā ā ā Other changes ā (4,624) ā ā ā (126) ā ā ā (4,750) ā Net cash (used for) provided by financing activities ā (80,065) ā (270,627) ā (36,739) ā 55,858 ā (331,573) ā Effect of exchange rate changes on cash and cash equivalents ā ā ā ā ā (6,171) ā ā ā (6,171) ā Net increase (decrease) in cash, cash equivalents and restricted cash ā (155) ā (4) ā (8,883) ā ā ā (9,042) ā Cash, cash equivalents and restricted cash, beginning of period ā 474 ā 43 ā 450,563 ā ā ā 451,080 ā Cash, cash equivalents and restricted cash, end of period ā $ 319 ā $ 39 ā $ 441,680 ā $ ā ā $ 442,038 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2018 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā Guarantor) (Issuer) Guarantors) Adjustments Total ā ā (In thousands) Net cash provided by (used for) operating activities ā $ 86,504 ā $ (208,943) ā $ 495,709 ā $ (47,497) ā $ 325,773 ā Cash flows from investing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Purchases of investments ā ā ā ā ā (676) ā ā ā (676) ā Sales and maturities of investments ā ā ā ā ā 4,287 ā ā ā 4,287 ā Cash paid for acquisitions of businesses, net of cash acquired ā ā ā (20,859) ā ā ā ā ā (20,859) ā Cash paid for investments in consolidated affiliates ā (587,500) ā ā ā (206,500) ā 794,000 ā ā ā Capital expenditures ā ā ā ā ā ā (458,938) ā ā ā (458,938) ā Proceeds from sale of assets and insurance claims ā ā ā ā ā 109,098 ā ā ā 109,098 ā Change in intercompany balances ā ā ā ā 502,856 ā (502,856) ā ā ā ā ā Net cash provided by (used for) investing activities ā (587,500) ā 481,997 ā (1,055,585) ā 794,000 ā (367,088) ā Cash flows from financing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Proceeds from issuance of long-term debt ā ā ā 800,000 ā ā ā ā ā 800,000 ā Reduction in long-term debt ā ā ā (878,278) ā ā ā ā ā (878,278) ā Debt issuance costs ā ā ā (21,277) ā ā ā ā ā (21,277) ā Proceeds from revolving credit facilities ā ā ā 1,135,000 ā ā ā ā ā 1,135,000 ā Reduction in revolving credit facilities ā ā ā (1,475,000) ā ā ā ā ā (1,475,000) ā Proceeds from (payments for) commercial paper, net ā ā ā (40,000) ā ā ā ā ā (40,000) ā Proceeds from (payments for) short-term borrowings ā ā ā ā ā 380 ā ā ā 380 ā Proceeds from issuance of common shares, net of issuance costs ā 301,404 ā ā ā ā ā ā ā 301,404 ā Proceeds from issuance of preferred stock, net of issuance costs ā 277,927 ā ā ā ā ā ā ā 277,927 ā Dividends to common and preferred shareholders ā (99,583) ā ā ā ā ā 12,485 ā (87,098) ā Redeemable noncontrolling interest ā ā ā ā ā 156,935 ā ā ā 156,935 ā Distributions to noncontrolling interest ā ā ā ā ā (5,452) ā ā ā (5,452) ā Proceeds from (payments for) issuance of intercompany debt ā 45,500 ā ā ā (45,500) ā ā ā ā ā Paydown of intercompany debt ā (21,000) ā ā ā 21,000 ā ā ā ā ā Proceeds from parent contributions ā ā ā 206,500 ā 587,500 ā (794,000) ā ā ā Distribution from subsidiary to parent ā ā ā ā ā (35,012) ā 35,012 ā ā ā Other changes ā (3,869) ā ā ā (5,043) ā ā ā (8,912) ā Net cash (used for) provided by financing activities ā 500,379 ā (273,055) ā 674,808 ā (746,503) ā 155,629 ā Effect of exchange rate changes on cash and cash equivalents ā ā ā ā ā (5,263) ā ā ā (5,263) ā Net increase (decrease) in cash, cash equivalents and restricted cash ā (617) ā (1) ā 109,669 ā ā ā 109,051 ā Cash, cash equivalents and restricted cash, beginning of period ā 1,091 ā 44 ā 340,894 ā ā ā 342,029 ā Cash, cash equivalents and restricted cash, end of period ā $ 474 ā $ 43 ā $ 450,563 ā $ ā ā $ 451,080 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, 2017 ā ā ā ā ā Other ā ā ā ā ā ā Nabors ā Nabors ā Subsidiaries ā ā ā ā ā ā ā ā (Parent/ ā Delaware ā (Non- ā Consolidating ā ā ā ā ā Guarantor) ā (Issuer) ā Guarantors) ā Adjustments ā Total ā ā (In thousands) Net cash provided by (used for) operating activities ā $ 143,444 ā $ (90,229) ā $ 142,527 ā $ (132,986) ā $ 62,756 ā Cash flows from investing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Purchases of investments ā ā ā ā ā (6,722) ā ā ā (6,722) ā Sales and maturities of investments ā ā ā ā ā 13,069 ā ā ā 13,069 ā Cash paid for acquisitions of businesses, net of cash acquired ā ā ā ā ā 12,319 ā ā ā 12,319 ā Cash paid for investments in consolidated affiliates ā (100) ā ā ā (85,960) ā 86,060 ā ā ā Capital expenditures ā ā ā ā ā (574,467) ā ā ā (574,467) ā Proceeds from sale of assets and insurance claims ā ā ā ā ā ā 57,933 ā ā ā 57,933 ā Change in intercompany balances ā ā ā (599,974) ā 599,974 ā ā ā ā ā Net cash provided by (used for) investing activities ā (100) ā (599,974) ā 16,146 ā 86,060 ā (497,868) ā Cash flows from financing activities: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Proceeds from issuance of long-term debt ā ā ā 411,200 ā ā ā ā ā 411,200 ā Reduction in long-term debt ā ā ā (270,269) ā (111,545) ā ā ā (381,814) ā Debt issuance costs ā ā ā (11,043) ā ā ā ā ā (11,043) ā Proceeds from revolving credit facilities ā ā ā 725,000 ā ā ā ā ā 725,000 ā Reduction in revolving credit facilities ā ā ā (215,000) ā ā ā ā ā (215,000) ā Proceeds from (payments for) commercial paper, net ā ā ā 40,000 ā ā ā ā ā 40,000 ā Cash proceeds (payments) from equity component of exchangeable debt ā ā ā 159,952 ā ā ā ā ā 159,952 ā Purchase of capped call hedge transactions ā ā ā (40,250) ā ā ā ā ā (40,250) ā Payments on term loan ā ā ā (162,500) ā ā ā ā ā (162,500) ā Proceeds from (payments for) short-term borrowings ā ā ā ā ā (543) ā ā ā (543) ā Proceeds from issuance of common shares, net of issuance costs ā 8,299 ā ā ā 1 ā ā ā 8,300 ā Repurchase of common shares ā (18,071) ā ā ā ā ā ā ā (18,071) ā Dividends to common and preferred shareholders ā (80,419) ā ā ā ā ā 11,916 ā (68,503) ā Redeemable noncontrolling interest ā ā ā ā ā 61,123 ā ā ā 61,123 ā Noncontrolling interest contribution ā ā ā ā ā 20,000 ā ā ā 20,000 ā Distributions to noncontrolling interest ā ā ā ā ā (7,272) ā ā ā (7,272) ā Proceeds from (payments for) issuance of intercompany debt ā 57,000 ā 20,000 ā (77,000) ā ā ā ā ā Paydown of intercompany debt ā (102,000) ā (20,000) ā 122,000 ā ā ā ā ā Proceeds from parent contributions ā ā ā 42,980 ā 43,080 ā (86,060) ā ā ā Distribution from subsidiary to parent ā ā ā ā ā (121,070) ā 121,070 ā ā ā Other changes ā (8,210) ā ā ā (189) ā ā ā (8,399) ā Net cash (used for) provided by financing activities ā (143,401) ā 680,070 ā (71,415) ā 46,926 ā 512,180 ā Effect of exchange rate changes on cash and cash equivalents ā ā ā ā ā (29) ā ā ā (29) ā Net increase (decrease) in cash, cash equivalents and restricted cash ā (57) ā (10,133) ā 87,229 ā ā ā 77,039 ā Cash, cash equivalents and restricted cash, beginning of period ā 1,148 ā 10,177 ā 253,665 ā ā ā 264,990 ā Cash, cash equivalents and restricted cash, end of period ā 1,091 ā 44 ā 340,894 ā ā ā 342,029 ā |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory, net | ||
Raw materials | $ 130,414 | $ 116,840 |
Work-in-progress | 5,498 | 20,329 |
Finished goods | 40,429 | 28,418 |
Total inventory | 176,341 | 165,587 |
Inventory Valuation Reserves | $ 35,000 | $ 27,900 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||
Value of shares sold | $ 301,404 | $ 8,300 | |
Loss on sale of offshore rigs | $ 7,141 | $ 11,789 | $ 19,026 |
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 | ||
Building | Minimum | |||
Property, Plant and Equipment | |||
Estimated useful life | 10 years | ||
Building | Maximum | |||
Property, Plant and Equipment | |||
Estimated useful life | 30 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 Accoun_6
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | ||||
Goodwill - Beginning Balance | $ 183,914 | $ 173,226 | ||
Acquisitions and purchase price adjustment | 11,436 | |||
Disposals and Impairments | (155,973) | |||
Cumulative Translation Adjustment | 439 | (748) | ||
Goodwill - Ending Balance | $ 28,380 | $ 28,380 | 183,914 | |
Goodwill | ||||
Long-term growth rate used to calculate terminal values for each reporting unit (as a percent) | 2.00% | |||
Goodwill impairments | $ 155,973 | |||
Discontinued Operation, additional disclosures | ||||
Goodwill for the consolidated company, expected to be deductible for tax purposes | 8,200 | 8,200 | ||
U.S. Drilling | ||||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | ||||
Goodwill - Beginning Balance | 50,149 | 50,149 | ||
Disposals and Impairments | (52,203) | |||
Other Adjustment | 2,054 | |||
Goodwill - Ending Balance | 50,149 | |||
Goodwill | ||||
Goodwill impairments | 52,200 | |||
International Drilling | ||||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | ||||
Goodwill - Beginning Balance | 75,634 | 75,634 | ||
Disposals and Impairments | (75,634) | |||
Goodwill - Ending Balance | 75,634 | |||
Goodwill | ||||
Goodwill impairments | $ 75,600 | |||
Drilling Solutions | ||||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | ||||
Goodwill - Beginning Balance | 11,436 | |||
Acquisitions and purchase price adjustment | 11,436 | |||
Goodwill - Ending Balance | 11,436 | 11,436 | 11,436 | |
Rig Technologies | ||||
Change in the carrying amount of goodwill for various contract drilling segments and other operating segments | ||||
Goodwill - Beginning Balance | 46,695 | 47,443 | ||
Disposals and Impairments | (28,136) | |||
Cumulative Translation Adjustment | 439 | (748) | ||
Other Adjustment | (2,054) | |||
Goodwill - Ending Balance | 16,944 | $ 16,944 | $ 46,695 | |
Goodwill | ||||
Goodwill impairments | $ 10,100 | $ 18,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Research and Engineering (Details) - In Process Research and Development - Two T D Drilling - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets | |||
Intangible Assets | $ 32.5 | $ 21.7 | |
Transfer of research and development expenses to completed technology | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies | ||
US Federal tax rate (as a percent) | 21.00% | 35.00% |
Provision for income taxes | $ 138.6 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncement, Early Adoption | ||
Lease liability | $ 46,875 | |
Right of use assets | $ 46,647 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncement, Early Adoption | ||
Lease liability | $ 42,800 | |
Right of use assets | $ 42,800 |
Impairments and Other Charges_2
Impairments and Other Charges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Tangible Assets And Equipment | |||||
Provision for retirement of assets | $ 33,205 | $ 14,617 | |||
Impairment of long-lived assets | 10,363 | 45,570 | $ 6,895 | ||
Subtotal | 43,568 | 60,187 | 6,895 | ||
Goodwill And Intangible Assets: | |||||
Goodwill impairments | 155,973 | ||||
Intangible asset impairment | 47,731 | ||||
Subtotal | 203,704 | ||||
Other Charges: | |||||
Provision for international activities | 43,220 | 64,700 | |||
Severance and transaction related costs | 11,447 | 14,323 | 21,628 | ||
Loss (gain) on debt buyback | (11,468) | 5,268 | 16,013 | ||
Divestiture of International assets | 64,668 | ||||
Total impairments and other charges | 290,471 | 144,446 | 44,536 | ||
Transaction related costs | 14,300 | 21,600 | |||
Principal amount redeemed | 468,300 | ||||
Payment of long-term debt | 455,360 | $ 878,278 | 381,814 | ||
Number of remaining SCR rigs retired | item | 13 | ||||
U.S. Drilling | |||||
Goodwill And Intangible Assets: | |||||
Goodwill impairments | $ 52,200 | ||||
Canada Drilling | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 17,800 | ||||
International Drilling | |||||
Tangible Assets And Equipment | |||||
Provision for retirement of assets | 15,400 | ||||
Impairment of long-lived assets | 2,500 | ||||
Goodwill And Intangible Assets: | |||||
Goodwill impairments | $ 75,600 | ||||
Other Charges: | |||||
Number of offshore drilling rigs sold | item | 3 | ||||
Number of workers rigs sold | item | 8 | ||||
Rig Technologies | |||||
Goodwill And Intangible Assets: | |||||
Goodwill impairments | 10,100 | $ 18,000 | |||
Senior Notes. | |||||
Other Charges: | |||||
Loss (gain) on debt buyback | 16,000 | ||||
Principal amount redeemed | $ 873,000 | 367,900 | |||
Debt Instrument, Repurchased Face Amount | $ 468,300 | 468,300 | 873,000 | 367,900 | |
Payment of long-term debt | $ 461,100 | $ 906,500 | $ 381,700 |
Accounts Receivable Sales Agr_2
Accounts Receivable Sales Agreement (Details) - A/R Agreement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Sep. 13, 2019 | |
Accounts Receivable Sales Agreement | ||
Agreement amount | $ 171.7 | $ 250 |
Accounts receivables sold to purchasers | 140 | |
Gain (loss) on sale of receivables | 0 | |
Trade receivables pledged as collateral | $ 143.6 |
Acquisitions - 2018 and 2017 Ac
Acquisitions - 2018 and 2017 Acquisitions (Details) - USD ($) $ in Thousands | Oct. 03, 2018 | Dec. 15, 2017 | Sep. 05, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Acquisitions | |||||||||||||||
Cash paid for acquisitions of businesses | $ 2,929 | $ 25,000 | $ 51,664 | ||||||||||||
Goodwill | $ 173,226 | $ 28,380 | $ 183,914 | 28,380 | 183,914 | 173,226 | |||||||||
Liabilities: | |||||||||||||||
Net income (loss) | $ (262,684) | $ (118,928) | $ (203,564) | $ (117,709) | $ (183,418) | $ (114,577) | $ (198,752) | $ (144,201) | $ (702,885) | $ (640,948) | $ (546,811) | ||||
Stavanger Based Robotic Drilling Systems AS | |||||||||||||||
Acquisitions | |||||||||||||||
Cash paid for acquisitions of businesses | $ 50,700 | ||||||||||||||
Recorded intangible assets | 53,300 | ||||||||||||||
Goodwill | 5,700 | ||||||||||||||
Other liabilities | 7,300 | ||||||||||||||
Liabilities: | |||||||||||||||
Other long-term liabilities | 7,300 | ||||||||||||||
Stavanger Based Robotic Drilling Systems AS | Developed Technology | |||||||||||||||
Acquisitions | |||||||||||||||
Recorded intangible assets | $ 20,800 | ||||||||||||||
Estimated Useful Life | 10 years | ||||||||||||||
Stavanger Based Robotic Drilling Systems AS | In Process Research and Development | |||||||||||||||
Acquisitions | |||||||||||||||
Recorded intangible assets | $ 32,500 | ||||||||||||||
PetroMar Technologies | |||||||||||||||
Acquisitions | |||||||||||||||
Cash paid for acquisitions of businesses | $ 25,000 | ||||||||||||||
Recorded intangible assets | 36,200 | ||||||||||||||
Goodwill | 11,400 | ||||||||||||||
Other liabilities | 22,600 | ||||||||||||||
Liabilities: | |||||||||||||||
Other long-term liabilities | 22,600 | ||||||||||||||
PetroMar Technologies | Developed Technology | |||||||||||||||
Acquisitions | |||||||||||||||
Recorded intangible assets | 13,700 | ||||||||||||||
PetroMar Technologies | Trade Names [Member] | |||||||||||||||
Acquisitions | |||||||||||||||
Recorded intangible assets | 800 | ||||||||||||||
PetroMar Technologies | In Process Research and Development | |||||||||||||||
Acquisitions | |||||||||||||||
Recorded intangible assets | $ 21,700 | ||||||||||||||
Tesco Corporation | |||||||||||||||
Acquisitions | |||||||||||||||
Fair value of common shares issued | $ 179,000 | ||||||||||||||
Other liabilities | 2,436 | ||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | 59,804 | ||||||||||||||
Accounts receivable | 40,465 | ||||||||||||||
Inventory | 44,525 | ||||||||||||||
Other current assets | 13,889 | ||||||||||||||
Property, plant and equipment, net | 68,591 | ||||||||||||||
Other long-term assets | 3,647 | ||||||||||||||
Total assets | 230,921 | ||||||||||||||
Liabilities: | |||||||||||||||
Accounts payable | 14,111 | ||||||||||||||
Accrued liabilities | 35,383 | ||||||||||||||
Other long-term liabilities | 2,436 | ||||||||||||||
Total liabilities | 51,930 | ||||||||||||||
Net assets acquired | $ 178,991 | ||||||||||||||
Operating revenues | 7,700 | ||||||||||||||
Net income (loss) | 100 | ||||||||||||||
Business Acquisition, Pro Forma Information | |||||||||||||||
Operating revenues | $ 7,700 | ||||||||||||||
Common Stock | Tesco Corporation | |||||||||||||||
Acquisitions | |||||||||||||||
Number of shares of Nabors stock exchanged per share of acquiree stock | 0.68 | ||||||||||||||
Number of common shares to be issued | 32,100,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements | ||
Amount of transfers of financial assets between Level 1 and Level 2 measures | $ 0 | |
Total short-term investments | $ 16,506 | $ 34,036 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Details) - USD ($) $ in Thousands | Feb. 24, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 11, 2018 | Jan. 31, 2017 |
Fair Value of Financial Instruments | ||||||
Less: current portion | $ 561 | |||||
Less: deferred financing costs | $ 30,332 | 38,325 | ||||
Long-term Debt, Excluding Current Maturities, Total | $ 3,333,220 | $ 3,585,884 | ||||
5.00% senior notes due September 2020 | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 5.00% | 5.00% | ||||
Effective Interest Rate (as a percent) | 5.44% | 5.25% | ||||
4.625% senior notes due September 2021 | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 4.625% | 4.625% | ||||
Effective Interest Rate (as a percent) | 4.76% | 4.75% | ||||
5.50% senior notes due January 2023 | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 5.50% | 5.50% | 5.50% | |||
Effective Interest Rate (as a percent) | 5.90% | 5.84% | ||||
Senior Notes 5.50 Percentage Due Two Zero Two Three [Member] | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 5.50% | |||||
5.10% senior notes due September 2023 | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 5.10% | 5.10% | 5.10% | |||
Effective Interest Rate (as a percent) | 5.24% | 5.26% | ||||
0.75% senior exchangeable notes due January 2024 | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 0.75% | 0.75% | ||||
Effective Interest Rate (as a percent) | 5.97% | 6.04% | ||||
Less: deferred financing costs | $ 9,600 | |||||
5.75% senior notes due February 2025 | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 5.75% | |||||
Effective Interest Rate (as a percent) | 6.01% | 5.87% | ||||
2012 Revolving Credit Facility | ||||||
Fair Value of Financial Instruments | ||||||
Effective Interest Rate (as a percent) | 3.71% | 3.58% | ||||
2018 Revolving Credit Facility | ||||||
Fair Value of Financial Instruments | ||||||
Interest rate on senior notes due (as a percent) | 5.50% | |||||
Fair Value | ||||||
Fair Value of Financial Instruments | ||||||
Debt | $ 3,196,661 | $ 3,049,812 | ||||
Fair Value | 5.00% senior notes due September 2020 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 284,907 | 590,336 | ||||
Fair Value | 4.625% senior notes due September 2021 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 632,516 | 603,457 | ||||
Fair Value | 5.50% senior notes due January 2023 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 483,834 | 465,999 | ||||
Fair Value | 5.10% senior notes due September 2023 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 303,860 | 262,494 | ||||
Fair Value | 0.75% senior exchangeable notes due January 2024 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 431,503 | 358,012 | ||||
Fair Value | 5.75% senior notes due February 2025 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 705,040 | 598,953 | ||||
Fair Value | 2012 Revolving Credit Facility | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 355,000 | 170,000 | ||||
Fair Value | Other | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 561 | |||||
Carrying Value | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 3,363,552 | 3,624,770 | ||||
Less: current portion | 561 | |||||
Less: deferred financing costs | 30,332 | 38,325 | ||||
Long-term Debt, Excluding Current Maturities, Total | 3,333,220 | 3,585,884 | ||||
Carrying Value | 5.00% senior notes due September 2020 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 282,046 | 614,748 | ||||
Carrying Value | 4.625% senior notes due September 2021 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 634,588 | 668,347 | ||||
Carrying Value | 5.50% senior notes due January 2023 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 501,003 | 586,000 | ||||
Carrying Value | 5.10% senior notes due September 2023 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 336,810 | 342,923 | ||||
Carrying Value | 0.75% senior exchangeable notes due January 2024 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 472,603 | 450,689 | ||||
Carrying Value | 5.75% senior notes due February 2025 | ||||||
Fair Value of Financial Instruments | ||||||
Debt | 781,502 | 791,502 | ||||
Carrying Value | 2012 Revolving Credit Facility | ||||||
Fair Value of Financial Instruments | ||||||
Debt | $ 355,000 | 170,000 | ||||
Carrying Value | Other | ||||||
Fair Value of Financial Instruments | ||||||
Debt | $ 561 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Plans (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)item$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | |
Share-based compensation disclosures | ||||
Share-based compensation expense | $ | $ 24,700 | $ 26,400 | $ 31,900 | |
Liability related to awards | $ | 97,003 | 92,358 | ||
Restricted Stock | ||||
Share-based compensation disclosures | ||||
Share-based compensation expense | $ | $ 24,500 | $ 26,000 | $ 31,400 | |
Number of types of performance share awards | item | 2 | |||
Option to purchase common stock available for grant | 7,700,000 | |||
Shares awarded during period | 3,265,000 | |||
Options | ||||
Forfeited (in shares) | (521,000) | |||
Weighted Average Exercise Price | ||||
Forfeited (in dollars per share) | $ / shares | $ 6.06 | |||
Restricted Stock | Employees and Director | ||||
Share-based compensation disclosures | ||||
Shares awarded during period | 3,264,925 | 2,392,486 | 1,130,304 | |
Aggregate value of restricted stock awards at date of grant | $ | $ 10,600 | $ 16,600 | $ 14,500 | |
Fair value of awards vested | $ | $ 4,100 | $ 8,700 | $ 19,200 | |
Restricted Stock | Maximum | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 5 years | |||
Restricted Stock | Maximum | Employees and Director | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 4 years | 4 years | 4 years | |
Restricted Stock Based on Performance Conditions | ||||
Share-based compensation disclosures | ||||
Shares awarded during period | 2,413,000 | |||
Fair value of awards vested | $ | $ 7,500 | $ 7,000 | $ 7,100 | |
Restricted Stock Based on Performance Conditions | Executive Officer | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 3 years | 3 years | 3 years | |
Total fair value of option vested during the period | $ | $ 2,500 | $ 4,800 | $ 7,100 | |
Shares awarded during period | 2,412,631 | 1,009,948 | 461,919 | |
Liability related to awards | $ | $ 2,400 | $ 2,200 | ||
Restricted Stock Based on Market Conditions | ||||
Share-based compensation disclosures | ||||
Vesting period of shares | 3 years | 3 years | 3 years | |
Shares awarded during period | 2,609,561 | 1,058,158 | 397,692 | |
Aggregate value of restricted stock awards at date of grant | $ | $ 3,700 | $ 5,100 | $ 4,400 | |
Assumptions used to value grant date fair value | ||||
Risk free interest rate (as a percent) | 2.48% | 2.02% | 1.62% | |
Expected volatility (as a percent) | 70.00% | 57.00% | 55.00% | |
Closing stock price at grant date (in dollars per share) | $ / shares | $ 2.19 | $ 6.87 | $ 16.81 | |
Expected term (in years) | 3 years | 3 years | 3 years | |
Key Officer Director and Managerial Employee Stock Options | ||||
Share-based compensation disclosures | ||||
Option to purchase common stock available for grant | 8,500,000 | 15,200,000 | ||
Exercise period | 10 years | |||
Total fair value of option vested during the period | $ | $ 200 | $ 400 | $ 500 | |
Options | ||||
Options outstanding at the beginning of the period (in shares) | 3,776,000 | |||
Granted (in shares) | 138,000 | 171,124 | ||
Exercised (in shares) | 0 | 0 | ||
Surrendered (in shares) | (2,269,000) | |||
Forfeited (in shares) | (15,000) | |||
Options outstanding at the end of the period (in shares) | 1,630,000 | 3,776,000 | ||
Options exercisable at the end of the period (in shares) | 1,630,000 | |||
Weighted Average Exercise Price | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 11.36 | |||
Granted (in dollars per share) | $ / shares | 2.60 | |||
Surrendered (in dollars per share) | $ / shares | 9.83 | |||
Forfeited (in dollars per share) | $ / shares | 9.18 | |||
Options outstanding at the end of the period (in dollars per share) | $ / shares | 12.77 | $ 11.36 | ||
Options exercisable at the end of the period (in dollars per share) | $ / shares | $ 12.77 | |||
Weighted Average Remaining Contractual Term | ||||
Options outstanding at the end of the period | 4 years 4 months 13 days | |||
Options exercisable at the end of the period | 4 years 4 months 13 days | |||
Aggregate Intrinsic Value | ||||
Options outstanding at the end of the period (in dollars) | $ | $ 119 | |||
Options exercisable at the end of the period (in dollars) | $ | $ 119 | |||
Assumptions used to value grant date fair value | ||||
Granted (in dollars per share) | $ / shares | $ 1.07 | $ 1.75 | $ 2.86 | |
Risk free interest rate (as a percent) | 1.79% | 2.59% | 1.85% | |
Dividend yield (as a percent) | 1.65% | 3.03% | 2.94% | |
Expected volatility (as a percent) | 57.59% | 57.11% | 50.82% | |
Expected term (in years) | 4 years | 4 years | 4 years | |
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) | 137,954 | 171,124 | 124,271 |
Share-Based Compensation - St_2
Share-Based Compensation - Stock Options Unvested (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unvested Stock Options | |||
Unvested stock options | |||
Options outstanding at the beginning of the period (in shares) | 17,000 | ||
Granted (in shares) | 138,000 | ||
Vested (in shares) | (155,000) | ||
Options outstanding at the end of the period (in shares) | 17,000 | ||
Weighted-Average Grant-Date Fair Value | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 5.21 | ||
Granted (in dollars per share) | 1.07 | ||
Vested (in dollars per share) | $ 1.53 | ||
Options outstanding at the end of the period (in dollars per share) | $ 5.21 | ||
Key Officer Director and Managerial Employee Stock Options | |||
Unvested stock options | |||
Granted (in shares) | 138,000 | 171,124 | |
Weighted-Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 1.07 | $ 1.75 | $ 2.86 |
Total intrinsic value of stock options exercised | $ 5.1 | ||
Total fair value of option vested during the period | $ 0.2 | $ 0.4 | $ 0.5 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Unvested restricted stock | |||
Outstanding at the beginning of the period (in shares)) | 3,612,000 | ||
Granted (in shares) | 3,265,000 | ||
Vested (in shares) | (1,444,000) | ||
Outstanding at the end of the period (in shares) | 4,912,000 | 3,612,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 9.16 | ||
Granted (in dollars per share) | 3.26 | ||
Vested (in dollars per share) | 9.66 | ||
Outstanding at the end of the period (in dollars per share) | $ 5.42 | $ 9.16 | |
Total future compensation cost related to unvested awards that are expected to vest | $ 17.9 | ||
Weighted Average Period for Cost recognition | 2 years | ||
Restricted Stock | Employees and Director | |||
Unvested restricted stock | |||
Granted (in shares) | 3,264,925 | 2,392,486 | 1,130,304 |
Restricted Stock Based on Performance Conditions | |||
Unvested restricted stock | |||
Outstanding at the beginning of the period (in shares)) | 1,746,000 | ||
Granted (in shares) | 2,413,000 | ||
Vested (in shares) | (919,000) | ||
Outstanding at the end of the period (in shares) | 3,240,000 | 1,746,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 9.35 | ||
Granted (in dollars per share) | 3.10 | ||
Vested (in dollars per share) | 10.15 | ||
Outstanding at the end of the period (in dollars per share) | $ 4.47 | $ 9.35 | |
Total future compensation cost related to unvested awards that are expected to vest | $ 4.2 | ||
Restricted Stock Based on Performance Conditions | Executive Officer | |||
Unvested restricted stock | |||
Granted (in shares) | 2,412,631 | 1,009,948 | 461,919 |
Restricted Stock Based on Market Conditions | |||
Unvested restricted stock | |||
Outstanding at the beginning of the period (in shares)) | 1,357,000 | ||
Granted (in shares) | 2,609,561 | 1,058,158 | 397,692 |
Vested (in shares) | (188,000) | ||
Forfeited (in shares) | (562,000) | ||
Outstanding at the end of the period (in shares) | 3,217,000 | 1,357,000 | |
Weighted-Average Grant-Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 7.09 | ||
Granted (in dollars per share) | 1.42 | ||
Vested (in dollars per share) | 5.58 | ||
Forfeited (in dollars per share) | 5.58 | ||
Outstanding at the end of the period (in dollars per share) | $ 2.84 | $ 7.09 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 13,615,622 | $ 13,695,384 | |
Less: accumulated depreciation and amortization | (8,685,073) | (8,227,514) | |
Property, Plant and Equipment, Net, Total | 4,930,549 | 5,467,870 | $ 6,109,565 |
Depreciation | 869,600 | 860,600 | 835,900 |
Repair and maintenance expense | 248,600 | 265,600 | 241,400 |
Interest costs capitalized | 1,500 | 1,000 | $ 2,500 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 33,931 | 43,187 | |
Building | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 132,603 | 123,619 | |
Drilling, workover rigs and related equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 12,948,504 | 13,021,580 | |
Oilfield Hauling and Mobile Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 270,826 | 267,223 | |
Other Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 192,081 | 197,094 | |
Oil and Gas Properties | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 12,286 | 12,286 | |
Construction in Progress | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 25,391 | $ 30,395 |
Financial Instruments and Ris_2
Financial Instruments and Risk Concentration (Details) | Feb. 24, 2020 | Jan. 31, 2020 | Dec. 31, 2019 |
5.00% senior notes due September 2020 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |
4.625% senior notes due September 2021 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | |
Senior Notes 5.50 Percentage Due Two Zero Two Three [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
5.10% senior notes due September 2023 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | 5.10% |
5.75% senior notes due February 2025 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% |
Debt (Details)
Debt (Details) | Dec. 13, 2019USD ($) | Jan. 31, 2017USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 24, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 11, 2018USD ($) |
Debt | ||||||||
Other | $ 561,000 | |||||||
Long-term Debt | $ 3,363,552,000 | 3,624,770,000 | ||||||
Less: current portion | 561,000 | |||||||
Less: deferred financing costs | 30,332,000 | 38,325,000 | ||||||
Long-term Debt, Excluding Current Maturities, Total | 3,333,220,000 | 3,585,884,000 | ||||||
Additional aggregate principal amount | 800,000,000 | $ 411,200,000 | ||||||
Repayment of long-term debt | 455,360,000 | 878,278,000 | 381,814,000 | |||||
Gain (Loss) on debt repurchase | 11,468,000 | (5,268,000) | (16,013,000) | |||||
Deferred finance costs | $ 30,332,000 | 38,325,000 | ||||||
Payment of debt principal | 162,500,000 | |||||||
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% | |||||||
5.00% senior notes due September 2020 | ||||||||
Debt | ||||||||
Senior Notes | $ 282,046,000 | 614,748,000 | ||||||
Interest rate on senior notes due (as a percent) | 5.00% | 5.00% | ||||||
4.625% senior notes due September 2021 | ||||||||
Debt | ||||||||
Senior Notes | $ 634,588,000 | 668,347,000 | ||||||
Interest rate on senior notes due (as a percent) | 4.625% | 4.625% | ||||||
Repurchase amount | $ 379,700,000 | $ 5,000,000 | ||||||
Amount of debt tendered | $ 379,700,000 | |||||||
5.50% senior notes due January 2023 | ||||||||
Debt | ||||||||
Senior Notes | $ 501,003,000 | 586,000,000 | ||||||
Interest rate on senior notes due (as a percent) | 5.50% | 5.50% | 5.50% | |||||
Repurchase amount | $ 407,700,000 | $ 9,000,000 | $ 407,700,000 | |||||
Senior notes due 2020,2021 and 2023 | ||||||||
Debt | ||||||||
Repurchase amount | 952,900,000 | |||||||
Unamortized premium | 2,700,000 | |||||||
Senior Guaranteed Notes Due 2026 | ||||||||
Debt | ||||||||
Aggregate amount of senior notes | $ 600,000,000 | |||||||
Interest rate on senior notes due (as a percent) | 7.25% | |||||||
Senior Guaranteed Notes Due 2028 | ||||||||
Debt | ||||||||
Aggregate amount of senior notes | $ 400,000,000 | |||||||
Interest rate on senior notes due (as a percent) | 7.50% | |||||||
5.10% senior notes due September 2023 | ||||||||
Debt | ||||||||
Senior Notes | $ 336,810,000 | 342,923,000 | ||||||
Interest rate on senior notes due (as a percent) | 5.10% | 5.10% | 5.10% | |||||
Repurchase amount | $ 165,500,000 | $ 4,200,000 | $ 165,500,000 | |||||
0.75% senior exchangeable notes due January 2024 | ||||||||
Debt | ||||||||
Less: deferred financing costs | $ 9,600,000 | |||||||
Senior Notes | 472,603,000 | 450,689,000 | ||||||
Aggregate amount of senior notes | $ 575,000,000 | $ 575,000,000 | 575,000,000 | |||||
Interest rate on senior notes due (as a percent) | 0.75% | 0.75% | ||||||
Debt exchangeable notes | $ 411,200,000 | |||||||
Equity component | 163,800,000 | |||||||
Deferred finance costs | 9,600,000 | |||||||
Equity issuance costs | $ 3,900,000 | |||||||
Exchange rate of common shares | 39.75 | |||||||
Principal amount of notes | $ 1,000 | |||||||
Exchange price per common share (in dollars per share) | $ / shares | $ 25.16 | |||||||
Premium over share price (as a percent) | 75.00% | |||||||
Share price of shares purchased (in dollars per share) | $ / shares | 17.97 | |||||||
0.75% senior exchangeable notes due January 2024 | Minimum | ||||||||
Debt | ||||||||
Exchange price per common share (in dollars per share) | $ / shares | $ 31.45 | |||||||
5.75% senior notes due February 2025 | ||||||||
Debt | ||||||||
Senior Notes | $ 781,502,000 | 791,502,000 | ||||||
Interest rate on senior notes due (as a percent) | 5.75% | |||||||
5.50% senior notes due 2023 | ||||||||
Debt | ||||||||
Repurchase amount | $ 21,200,000 | |||||||
5.00% senior notes due 2020 | ||||||||
Debt | ||||||||
Interest rate on senior notes due (as a percent) | 5.00% | |||||||
Repurchase amount | $ 3,000,000 | |||||||
2012 Revolving Credit Facility | ||||||||
Debt | ||||||||
Revolving credit facility | 355,000,000 | 170,000,000 | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 666,250,000 | ||||||
Weighted average interest rate (as a percent) | 3.71% | |||||||
Debt to capital ratio | 0.59 | |||||||
2012 Revolving Credit Facility | Maximum | ||||||||
Debt | ||||||||
Debt to capital ratio | 0.60 | |||||||
2018 Revolving Credit Facility | ||||||||
Debt | ||||||||
Interest rate on senior notes due (as a percent) | 5.50% | |||||||
Revolving credit facility | 0 | |||||||
Maximum borrowing capacity | $ 1,013,600,000 | |||||||
Debt incurred under general indebtedness basket | $ 100,000,000 | |||||||
Reduction allowed to the general lien and general indebtedness baskets | 50,000,000 | |||||||
Remaining availability under credit facility | $ 150,000,000 | |||||||
Debt to EBITDA ratio | 5.5 | 5.5 | ||||||
2018 Revolving Credit Facility | Minimum | ||||||||
Debt | ||||||||
Assets to debt ratio | 2.50 | |||||||
2018 Revolving Credit Facility | US Lenders | ||||||||
Debt | ||||||||
Commitment amount | $ 981,600,000 | |||||||
2018 Revolving Credit Facility | Canadian Lender [Member] | ||||||||
Debt | ||||||||
Commitment amount | $ 32,000,000 | |||||||
2018 Revolving Credit Facility | Guarantor Subsidiaries | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 981,600,000 | |||||||
2018 Revolving Credit Facility | Nabors Canada | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 32,000,000 | |||||||
Senior Notes. | ||||||||
Debt | ||||||||
Principal amount redeemed | $ 468,300,000 | 873,000,000 | 367,900,000 | |||||
Repayment of long-term debt | $ 461,100,000 | $ 906,500,000 | 381,700,000 | |||||
Gain (Loss) on debt repurchase | $ (16,000,000) |
Debt - Maturities (Details)
Debt - Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturity of primary debt | |
2020 | $ 637,162 |
2021 | 634,999 |
2023 | 838,281 |
2024 | 575,000 |
Thereafter | 781,502 |
Total | $ 3,466,944 |
Debt - Short Term Borrowings (D
Debt - Short Term Borrowings (Details) $ in Thousands | Dec. 31, 2019USD ($)item |
Debt | |
Number of letter of credit facilities | item | 18 |
Letter of Credit | |
Debt | |
Credit available | $ 890,902 |
Less: Letters of credit outstanding, inclusive of financial and performance guarantees | (146,788) |
Remaining availability | $ 744,114 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States and Other Jurisdictions | |||
Income (loss) from continuing operations before income taxes | $ (588,922) | $ (518,794) | $ (580,084) |
U.S. Drilling | |||
United States and Other Jurisdictions | |||
Income before income taxes | 5,979 | (119,419) | (369,162) |
Outside the U.S | |||
United States and Other Jurisdictions | |||
Income before income taxes | $ (594,901) | $ (399,375) | $ (210,922) |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
U.S. federal | $ 1,210 | $ (32,351) | $ (160,761) |
State | 318 | 1,811 | (810) |
Current Income Tax Expense (Benefit), Total | 55,625 | 2,388 | (102,080) |
Deferred: | |||
State | 3,222 | (113) | (3,226) |
Deferred Income Tax Expense (Benefit), Total | 35,951 | 76,881 | 19,110 |
Total income tax expense (benefit) | 91,576 | 79,269 | (82,970) |
U.S. Drilling | |||
Deferred: | |||
U.S. federal | 58,157 | 37,476 | 49,020 |
Outside the U.S | |||
Current: | |||
Outside the U.S. | 54,097 | 32,928 | 59,491 |
Deferred: | |||
Outside the U.S. | $ (25,428) | $ 39,518 | $ (26,684) |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 54,060 | $ 49,375 | $ (98,119) |
Increase (decrease) in valuation allowance | 32,869 | 38,822 | 29,165 |
Impact of Tax Reform Act | 138,635 | ||
Tax reserves and interest | 1,107 | (10,626) | (148,615) |
State income taxes (benefit) | 3,540 | 1,698 | (4,036) |
Total income tax expense (benefit) | $ 91,576 | $ 79,269 | $ (82,970) |
Effective tax rate (as a percent) | (15.50%) | (15.30%) | 14.30% |
Effective income tax rate | 21.00% | 35.00% | |
Tax benefit from release of valuation allowance | $ 29,600 | ||
Tax dispute settlement amount | $ 14,400 | ||
Canada Drilling | |||
Reconciliation of the differences between taxes on income (loss) before income taxes | |||
Valuation allowance | $ 52,000 | ||
Office of the Tax Commissioner, Bermuda | |||
Reconciliation of the differences between taxes on income (loss) before income taxes | |||
Effective income tax rate | 0.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 2,834,851 | $ 1,967,910 |
Equity compensation | 6,577 | 7,038 |
Deferred revenue | 8,873 | 16,494 |
Tax credit and other attribute carryforwards | 97,215 | 100,752 |
Insurance loss reserves | 2,248 | 2,451 |
Accrued interest | 172,120 | 206,088 |
Other | 95,588 | 82,167 |
Subtotal | 3,217,472 | 2,382,900 |
Valuation allowance | (2,813,567) | (1,917,390) |
Deferred tax assets | 403,905 | 465,510 |
Deferred tax liabilities: | ||
Depreciation and amortization for tax in excess of book expense | 80,155 | 102,810 |
Other | 21,055 | 23,920 |
Deferred tax liability | 101,210 | 126,730 |
Net deferred tax assets (liabilities) | 302,695 | 338,780 |
Balance Sheet Summary : | ||
Deferred income taxes | 305,844 | 345,091 |
Net noncurrent deferred tax liability | $ (3,149) | $ (6,311) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Loss Carryforwards | |
Recognized valuation allowance relating to NOL carryforwards | $ 2,600 |
U.S. Federal | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | 418.3 |
U.S. Federal | Between 2030 and 2036 | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | 3,700 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | 1,100 |
Foreign | |
Operating Loss Carryforwards | |
Net operating loss carryforwards | $ 10,900 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of our uncertain tax positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in unrecognized tax benefits | |||
Balance as of January 1 | $ 25,711 | $ 33,203 | $ 179,255 |
Additions for tax positions of prior years | 1,003 | 308 | 25,119 |
Reductions for tax positions of prior years | (860) | (7,800) | (171,171) |
Settlements | (84) | ||
Balance as of December 31 | 25,770 | 25,711 | 33,203 |
Interest and penalties on unrecognized tax benefits | 7,700 | 6,700 | 9,700 |
Liability related to unrecognized tax benefit for accrued interest and penalties | $ 800 | $ 1,000 | $ 500 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 20, 2020 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Common Shares | |||||
Authorized share capital | 825,000,000 | ||||
Common shares, shares authorized | 800,000,000 | 800,000,000 | |||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common shares, shares issued | 416,198,000 | 409,652,000 | |||
Proceeds from issuance of common shares, net of issuance costs | $ 301,404 | $ 8,300 | |||
Shares repurchased | 3,100,000 | ||||
Total aggregate amount of shares purchased | $ 18,100 | ||||
Treasury shares reissued during the year | 0 | 0 | 0 | ||
Dividends to common shareholders (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.24 | $ 0.24 | |
Preferred shares, shares issued | 5,613,000 | 5,750,000 | |||
Preferred stock, rate (as a percent) | 6.00% | 6.00% | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, liquidation preference (in dollars per share) | 50 | $ 50 | |||
Aggregate net proceeds | $ 277,927 | ||||
Cash dividend per mandatory convertible preferred shares (in dollars per share) | $ 2.14 | $ 2.14 | |||
Repurchase of treasury shares | $ 18,071 | ||||
Preferred shares, shares authorized | 25,000,000 | ||||
Mandatory Convertible Preferred Shares | |||||
Common Shares | |||||
Shares repurchased | 136,772 | ||||
Total aggregate amount of shares purchased | $ 2,900 | ||||
Preferred shares, shares issued | 5,750,000 | ||||
Preferred stock, rate (as a percent) | 6.00% | ||||
Preferred stock, par value (in dollars per share) | $ 0.001 | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 50 | ||||
Cash dividend per mandatory convertible preferred shares (in dollars per share) | $ 0.75 | ||||
Mandatory Convertible Preferred Shares | Underwriters option | |||||
Common Shares | |||||
Preferred shares, shares issued | 750,000 | ||||
Common Stock | |||||
Common Shares | |||||
Common shares, shares issued | 40,250,000 | ||||
Share price of shares purchased (in dollars per share) | $ 7.75 | ||||
Proceeds from issuance of common shares, net of issuance costs | $ 301,400 | ||||
Number of consecutive trading days to calculate average share price of common stock | 20 days | ||||
Common Stock | Minimum | |||||
Common Shares | |||||
Conversion ratio | 5.3763 | 5.6751 | |||
Common Stock | Maximum | |||||
Common Shares | |||||
Conversion ratio | 6.4516 | 6.8102 | |||
Common Stock | Mandatory Convertible Preferred Shares | Underwriters option | |||||
Common Shares | |||||
Aggregate net proceeds | $ 277,900 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Accounts receivable | $ 453,042 | $ 756,320 | |
Other current assets | 164,257 | 177,604 | |
Property, plant and equipment, net | $ 6,109,565 | 4,930,549 | 5,467,870 |
Other long-term assets | 247,219 | 263,506 | |
Total assets (1) | 6,760,658 | 7,853,944 | |
Liabilities: | |||
Accounts payable | 295,159 | 392,843 | |
Accrued liabilities | 333,282 | 417,912 | |
Total liabilities (1) | 4,285,101 | 4,698,757 | |
SANAD | |||
Assets: | |||
Cash and cash equivalents | 289,575 | 211,618 | |
Accounts receivable | 68,624 | 73,699 | |
Other current assets | 18,149 | 17,198 | |
Property, plant and equipment, net | 455,751 | 457,963 | |
Other long-term assets | 15,118 | 36,583 | |
Total assets (1) | 847,217 | 797,061 | |
Liabilities: | |||
Accounts payable | 64,365 | 60,087 | |
Accrued liabilities | 17,929 | 8,530 | |
Total liabilities (1) | $ 82,294 | $ 68,617 | |
SANAD | Saudi Aramco | |||
Joint Ventures | |||
Cash contribution for joint venture | 20,000 | ||
Additional contribution amount | $ 394,000 | ||
Maturity period | 25 years |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions | ||||
Premiums paid related to agreements | $ 0 | |||
Revenue from related party | 672,900,000 | $ 723,800,000 | $ 65,700,000 | |
Expenses from business transactions with unconsolidated affiliates | 200,000 | 100,000 | $ 100,000 | |
Accounts receivable from affiliated entities | 80,600,000 | 122,900,000 | ||
James R Crane [Member] | Crane Capital Group Inc [Member] | ||||
Related Party Transactions | ||||
Accounts payable to affiliated entities | 2,400,000 | 800,000 | ||
Amount paid to related party for services provided | 18,900,000 | 19,900,000 | $ 14,600,000 | |
Management [Member] | ||||
Related Party Transactions | ||||
Premium payments to date related to life insurance policies | 6,600,000 | |||
Cash surrender value included in other long-term assets | $ 5,500,000 | $ 5,500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Saudi Aramco (Details) | 12 Months Ended |
Dec. 31, 2019item | |
Joint Venture in Saudi Arabia | |
Number of drilling units to backstop entity share to purchase in the event of insufficient cash | 25 |
Commitments and Contingencies_2
Commitments and Contingencies - Min (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies | |||
Minimum period of operating lease | 30 days | ||
Rental expense relating to operating leases | $ 18.7 | $ 15 | |
Rental expense relating to operating leases | $ 15.9 |
Commitments and Contingencies_3
Commitments and Contingencies - Litigation (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Mar. 31, 2011USD ($) | Dec. 31, 2019USD ($) | |
Commitments and Contingencies, Disclosure | ||
Approximate multiplier of the amount at issue for fines and penalties | 4 | |
Court of Ouargla Algeria Foreign Currency Controls [Member] | ||
Commitments and Contingencies, Disclosure | ||
Litigation amount as per judgment | $ 23.7 | |
Payment of contract amount in foreign currency | 7.5 | |
Payment of contract amount in domestic currency | $ 3.2 | |
Court of Ouargla Algeria Foreign Currency Controls [Member] | Maximum | ||
Commitments and Contingencies, Disclosure | ||
Potential judgment in excess of accrual | $ 15.7 | |
KMG Nabors Drilling Company Joint Venture [Member] | Atyrau Oblast Ecology Department | ||
Commitments and Contingencies, Disclosure | ||
Administrative fines | 0.8 | |
Additional penalties and fines | 4 | |
KMG Nabors Drilling Company Joint Venture [Member] | Atyrau Oblast Ecology Department | Minimum | ||
Commitments and Contingencies, Disclosure | ||
Environmental damages | $ 3.4 |
Commitments and Contingencies_4
Commitments and Contingencies - Financial Guarantees (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Summary of total maximum amount of financial guarantees issued | |
2020 | $ 216,053 |
2021 | 3,690 |
Total | $ 219,743 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 | |
Net income (loss) (numerator): | ||||||||||||
Income (loss) from continuing operations, net of tax | $ (284,533) | $ (99,788) | $ (192,801) | $ (103,376) | $ (165,551) | $ (93,710) | $ (195,215) | $ (143,587) | $ (680,498) | $ (598,063) | $ (497,114) | |
Less: net (income) loss attributable to noncontrolling interest | 21,827 | (19,297) | (10,729) | (14,176) | (17,796) | (6,934) | (2,953) | (539) | (22,375) | (28,222) | (6,178) | |
Less: preferred stock dividends | (4,309) | (4,310) | (4,312) | (4,313) | (4,312) | (4,313) | (3,680) | (17,244) | (12,305) | |||
Accrued distribution on redeemable noncontrolling interest in subsidiary | (20,534) | (11,098) | ||||||||||
Less: distributed and undistributed earnings allocated to unvested shareholders | (459) | (1,819) | 13,210 | |||||||||
Adjusted income (loss) from continuing operations, net of tax - basic | (741,110) | (651,507) | (490,082) | |||||||||
Income (loss) from discontinued operations, net of tax | $ 22 | $ 157 | $ (34) | $ (157) | $ (71) | $ (13,933) | $ (584) | $ (75) | $ (12) | $ (14,663) | $ (43,519) | |
Weighted-average number of shares outstanding - basic | 351,617 | 334,397 | 280,653 | |||||||||
Earnings (losses) Per Share - Basic | ||||||||||||
Basic from continuing operations (in dollars per share) | $ (0.77) | $ (0.37) | $ (0.61) | $ (0.36) | $ (0.55) | $ (0.31) | $ (0.61) | $ (0.46) | $ (2.11) | $ (1.95) | $ (1.75) | |
Basic from discontinued operations (in dollars per share) | (0.04) | (0.04) | (0.15) | |||||||||
Total Basic (in dollars per share) | $ (0.77) | $ (0.37) | $ (0.61) | $ (0.36) | $ (0.55) | $ (0.35) | $ (0.61) | $ (0.46) | $ (2.11) | $ (1.99) | $ (1.90) | |
DILUTED EPS: | ||||||||||||
Adjusted income (loss) from continuing operations, net of tax - basic | $ (741,110) | $ (651,507) | $ (490,082) | |||||||||
Adjusted income (loss) from continuing operations, net of tax - diluted | (741,110) | (651,507) | (490,082) | |||||||||
Income (loss) from discontinued operations, net of tax | $ 22 | $ 157 | $ (34) | $ (157) | $ (71) | $ (13,933) | $ (584) | $ (75) | $ (12) | $ (14,663) | $ (43,519) | |
Weighted-average number of shares outstanding - basic | 351,617 | 334,397 | 280,653 | |||||||||
Weighted-average number of shares outstanding - diluted | 351,617 | 334,397 | 280,653 | |||||||||
Earnings (losses) per share: | ||||||||||||
Diluted from continuing operations (in dollars per share) | $ (0.77) | $ (0.37) | $ (0.61) | $ (0.36) | $ (0.55) | $ (0.31) | $ (0.61) | $ (0.46) | $ (2.11) | $ (1.95) | $ (1.75) | |
Diluted from discontinued operations (in dollars per share) | (0.04) | (0.04) | (0.15) | |||||||||
Total Diluted (in dollars per share) | $ (0.77) | $ (0.37) | $ (0.61) | $ (0.36) | $ (0.55) | $ (0.35) | $ (0.61) | $ (0.46) | $ (2.11) | $ (1.99) | $ (1.90) | |
0.75% senior exchangeable notes due January 2024 | ||||||||||||
Earnings (losses) per share: | ||||||||||||
Aggregate amount of senior notes | $ 575,000 | $ 575,000 | $ 575,000 | $ 575,000 | $ 575,000 | |||||||
Interest rate on senior notes due (as a percent) | 0.75% | 0.75% | 0.75% | |||||||||
0.75% senior exchangeable notes due January 2024 | Minimum | ||||||||||||
Earnings (losses) per share: | ||||||||||||
Share issued price (in dollars per share) | $ 25.16 | $ 25.16 |
Earnings (Losses) Per Share - E
Earnings (Losses) Per Share - Exclusions from Diluted Earnings (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded as anti-dilutive | 1,994 | 4,341 | 4,534 |
Mandatory Convertible Preferred Shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded as anti-dilutive | 39,200 |
Supplemental Balance Sheet, I_3
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued liabilities | ||
Accrued compensation | $ 97,003 | $ 92,358 |
Deferred revenue and proceeds on insurance and asset sales | 89,051 | 149,266 |
Other taxes payable | 31,472 | 33,199 |
Workers' compensation liabilities | 30,214 | 16,316 |
Interest payable | 51,316 | 59,718 |
Litigation reserves | 14,736 | 24,926 |
Current liability to discontinued operations | 2,445 | |
Dividends declared and payable | 7,832 | 25,330 |
Other accrued liabilities | 11,658 | 14,354 |
Accrued liabilities | $ 333,282 | $ 417,912 |
Supplemental Balance Sheet, I_4
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Investment income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment income (loss) | |||
Interest and dividend income | $ 8,424 | $ 4,957 | $ 2,227 |
Gains (losses) on marketable securities | 1,794 | (14,456) | (1,033) |
Investment income (loss) | $ 10,218 | $ (9,499) | $ 1,194 |
Supplemental Balance Sheet, I_5
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Other Expense (Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other expense (income) | |||
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets | $ 7,141 | $ 11,789 | $ 19,026 |
Litigation expenses and reserves | 5,226 | 9,939 | 1,273 |
Foreign currency transaction losses (gains) | 20,929 | 4,156 | 1,603 |
Other losses (gains) | (72) | 3,648 | (7,022) |
Other, net | $ 33,224 | $ 29,532 | $ 14,880 |
Supplemental Balance Sheet, I_6
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Accumulated Other Comp Inc (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | $ 2,700,850 | ||
Adoption of ASU No. 2016-01 | 0 | ||
Other comprehensive income (loss), net of tax | 17,537 | $ (40,510) | $ 23,304 |
Balance at the end of the period | 1,982,811 | 2,700,850 | |
Accumulated Other Comprehensive Income | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | (29,325) | 11,185 | |
Other comprehensive income (loss) before reclassifications | 16,943 | (31,962) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 594 | 596 | |
Other comprehensive income (loss), net of tax | 17,537 | (40,510) | |
Balance at the end of the period | (11,788) | (29,325) | 11,185 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedge | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | (492) | (922) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 427 | 430 | |
Other comprehensive income (loss), net of tax | 427 | 430 | |
Balance at the end of the period | (65) | (492) | (922) |
Unrealized gains (losses) on available-for-sale securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | 9,144 | ||
Other comprehensive income (loss), net of tax | (9,144) | ||
Balance at the end of the period | 9,144 | ||
Defined benefit pension plan items | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | (3,945) | (4,111) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 167 | 166 | |
Other comprehensive income (loss), net of tax | 167 | 166 | |
Balance at the end of the period | (3,778) | (3,945) | (4,111) |
Foreign currency items | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at the beginning of the period | (24,888) | 7,074 | |
Other comprehensive income (loss) before reclassifications | 16,943 | (31,962) | |
Other comprehensive income (loss), net of tax | 16,943 | (31,962) | |
Balance at the end of the period | $ (7,945) | (24,888) | $ 7,074 |
Accounting Standards Update 2016-01 | |||
Changes in accumulated other comprehensive income (loss) | |||
Adoption of ASU No. 2016-01 | 9,144 | ||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income | |||
Changes in accumulated other comprehensive income (loss) | |||
Adoption of ASU No. 2016-01 | (9,144) | ||
Accounting Standards Update 2016-01 | Unrealized gains (losses) on available-for-sale securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Adoption of ASU No. 2016-01 | $ (9,144) |
Supplemental Balance Sheet, I_7
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Reclass Accumulated Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | |||||||||||
Impairments and other charges | $ 290,471 | $ 144,446 | $ 44,536 | ||||||||
Interest expense | 204,311 | 227,124 | 222,889 | ||||||||
General and administrative expenses | 258,731 | 265,822 | 251,184 | ||||||||
Income (loss) from continuing operations before income taxes | (588,922) | (518,794) | (580,084) | ||||||||
Tax expense (benefit) | 91,576 | 79,269 | (82,970) | ||||||||
Net income (loss) | $ (284,511) | $ (99,631) | $ (192,835) | $ (103,533) | $ (165,622) | $ (107,643) | $ (195,799) | $ (143,662) | (680,510) | (612,726) | (540,633) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Unrealized (gains) losses on available-for-sale securities that were reclassified from net income | |||||||||||
Impairments and other charges | 970 | ||||||||||
Interest expense | 567 | 567 | 613 | ||||||||
General and administrative expenses | 217 | 216 | 200 | ||||||||
Income (loss) from continuing operations before income taxes | (784) | (783) | (1,783) | ||||||||
Tax expense (benefit) | (190) | (187) | (315) | ||||||||
Net income (loss) | $ (594) | $ (596) | $ (1,468) |
Supplemental Balance Sheet, I_8
Supplemental Balance Sheet, Income Statement and Cash Flow Information - Acquisitions of Businesses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental cash flow information | |||
Cash paid for income taxes | $ 6,553 | $ 11,383 | $ 20,581 |
Cash paid for interest, net of capitalized interest | 174,357 | 202,803 | 191,986 |
Net change in accounts payable related to capital expenditures | (7,624) | (8,556) | (35,227) |
Non-cash increase in assets attributable to redeemable noncontrolling interest in subsidiary | 43,928 | 142,875 | |
Acquisitions of businesses: | |||
Fair value of assets acquired | 2,929 | 48,053 | 280,709 |
Goodwill | 11,436 | 5,690 | |
Liabilities assumed | (34,489) | (55,742) | |
Shares issuance as consideration (non-cash financing activity) | (178,993) | ||
Cash paid for acquisitions of businesses | 2,929 | 25,000 | 51,664 |
Cash and restricted cash acquired in acquisitions of businesses | (4,141) | (63,983) | |
Cash (acquired in) paid for acquisitions of businesses, net | $ (2,929) | $ (20,859) | $ 12,319 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unaudited Quarterly Financial Information | |||||||||||
Operating revenues | $ 714,261 | $ 758,076 | $ 771,406 | $ 799,640 | $ 782,080 | $ 779,425 | $ 761,920 | $ 734,194 | $ 3,043,383 | $ 3,057,619 | $ 2,564,285 |
Income (loss) from continuing operations, net of tax | (284,533) | (99,788) | (192,801) | (103,376) | (165,551) | (93,710) | (195,215) | (143,587) | (680,498) | (598,063) | (497,114) |
Income (loss) from discontinued operations, net of tax | 22 | 157 | (34) | (157) | (71) | (13,933) | (584) | (75) | (12) | (14,663) | (43,519) |
Net income (loss) | (284,511) | (99,631) | (192,835) | (103,533) | (165,622) | (107,643) | (195,799) | (143,662) | (680,510) | (612,726) | (540,633) |
Less: Net (income) loss attributable to noncontrolling interest | 21,827 | (19,297) | (10,729) | (14,176) | (17,796) | (6,934) | (2,953) | (539) | (22,375) | (28,222) | (6,178) |
Net income (loss) attributable to Nabors | (262,684) | (118,928) | (203,564) | (117,709) | (183,418) | (114,577) | (198,752) | (144,201) | (702,885) | (640,948) | (546,811) |
Less: preferred stock dividends | (4,309) | (4,310) | (4,312) | (4,313) | (4,312) | (4,313) | (3,680) | (17,244) | (12,305) | ||
Net income (loss) attributable to Nabors common shareholders | $ (266,993) | $ (123,238) | $ (207,876) | $ (122,022) | $ (187,730) | $ (118,890) | $ (202,432) | $ (144,201) | $ (720,129) | $ (653,253) | $ (546,811) |
Earnings (losses) per share: | |||||||||||
Basic from continuing operations (in dollars per share) | $ (0.77) | $ (0.37) | $ (0.61) | $ (0.36) | $ (0.55) | $ (0.31) | $ (0.61) | $ (0.46) | $ (2.11) | $ (1.95) | $ (1.75) |
Basic from discontinued operations (in dollars per share) | (0.04) | (0.04) | (0.15) | ||||||||
Total Basic (in dollars per share) | (0.77) | (0.37) | (0.61) | (0.36) | (0.55) | (0.35) | (0.61) | (0.46) | (2.11) | (1.99) | (1.90) |
Diluted from continuing operations (in dollars per share) | (0.77) | (0.37) | (0.61) | (0.36) | (0.55) | (0.31) | (0.61) | (0.46) | (2.11) | (1.95) | (1.75) |
Diluted from discontinued operations (in dollars per share) | (0.04) | (0.04) | (0.15) | ||||||||
Total Diluted (in dollars per share) | $ (0.77) | $ (0.37) | $ (0.61) | $ (0.36) | $ (0.55) | $ (0.35) | $ (0.61) | $ (0.46) | $ (2.11) | $ (1.99) | $ (1.90) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financial information with respect to reportable segments | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | $ 714,261 | $ 758,076 | $ 771,406 | $ 799,640 | $ 782,080 | $ 779,425 | $ 761,920 | $ 734,194 | $ 3,043,383 | $ 3,057,619 | $ 2,564,285 |
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | 89,145 | 58,621 | (141,937) | ||||||||
Earnings (losses) from unconsolidated affiliates | (5) | 1 | 7 | ||||||||
Investment income (loss) | 10,218 | (9,499) | 1,194 | ||||||||
Interest expense | (204,311) | (227,124) | (222,889) | ||||||||
Impairments and other charges | (290,471) | (144,446) | (44,536) | ||||||||
Other, net | (33,224) | (29,532) | (14,880) | ||||||||
Income (loss) from continuing operations before income taxes | (588,922) | (518,794) | (580,084) | ||||||||
ASSETS | |||||||||||
Total assets (1) | 6,760,658 | 7,853,944 | 6,760,658 | 7,853,944 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 876,091 | 866,870 | 842,943 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | 423,967 | 453,435 | 539,191 | ||||||||
Operating segment | |||||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | 89,145 | 58,621 | (141,937) | ||||||||
Operating segment | U.S. Drilling | |||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 1,240,936 | 1,083,227 | 805,223 | ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | 64,313 | (21,298) | (213,877) | ||||||||
ASSETS | |||||||||||
Total assets (1) | 2,369,200 | 2,982,974 | 2,369,200 | 2,982,974 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 419,680 | 394,586 | 375,171 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | 184,705 | 222,338 | 330,875 | ||||||||
Operating segment | Canada Drilling | |||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 68,274 | 105,000 | 82,929 | ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | (14,483) | (6,166) | (22,262) | ||||||||
ASSETS | |||||||||||
Total assets (1) | 202,706 | 252,817 | 202,706 | 252,817 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 29,766 | 37,172 | 39,597 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | 5,020 | 12,981 | 17,197 | ||||||||
Operating segment | International Drilling | |||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 1,324,142 | 1,469,038 | 1,474,060 | ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | (8,903) | 74,221 | 108,428 | ||||||||
ASSETS | |||||||||||
Total assets (1) | 2,979,494 | 3,320,347 | 2,979,494 | 3,320,347 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 372,883 | 383,227 | 400,753 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | 209,728 | 172,565 | 159,817 | ||||||||
Operating segment | Drilling Solutions | |||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 252,790 | 250,242 | 140,701 | ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | 59,465 | 37,626 | 16,738 | ||||||||
ASSETS | |||||||||||
Total assets (1) | 218,004 | 281,078 | 218,004 | 281,078 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 32,289 | 31,037 | 16,188 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | 23,598 | 30,709 | 35,617 | ||||||||
Operating segment | Rig Technologies | |||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | 260,226 | 270,988 | 234,542 | ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | (11,247) | (25,762) | (30,964) | ||||||||
ASSETS | |||||||||||
Total assets (1) | 324,523 | 401,044 | 324,523 | 401,044 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 12,715 | 16,387 | 11,530 | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | 6,592 | 12,250 | 4,715 | ||||||||
Other reconciling items (1) | |||||||||||
Operating revenues and earnings (losses) from unconsolidated affiliates: | |||||||||||
Total operating revenues | (102,985) | (120,876) | (173,170) | ||||||||
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes: | |||||||||||
Adjusted income (loss) derived from operating activities | (160,274) | (166,815) | (157,043) | ||||||||
ASSETS | |||||||||||
Total assets (1) | $ 666,731 | $ 615,684 | 666,731 | 615,684 | |||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 8,758 | 4,461 | (296) | ||||||||
Capital expenditures and acquisitions of businesses | |||||||||||
Capital expenditures | $ (5,676) | $ 2,592 | $ (9,030) |
Segment Information - By Geogra
Segment Information - By Geographic Area (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($)customer | |
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | $ 714,261 | $ 758,076 | $ 771,406 | $ 799,640 | $ 782,080 | $ 779,425 | $ 761,920 | $ 734,194 | $ 3,043,383 | $ 3,057,619 | $ 2,564,285 |
Property, Plant and Equipment, Net | 4,930,549 | 5,467,870 | 4,930,549 | 5,467,870 | 6,109,565 | ||||||
Goodwill | 28,380 | 183,914 | $ 28,380 | $ 183,914 | $ 173,226 | ||||||
Sales Revenue | One customer | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Number of customers | customer | 1 | 1 | 1 | ||||||||
Sales Revenue | Customer Concentration Risk | One customer | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Percentage | 22.00% | 24.00% | 29.00% | ||||||||
U.S. Drilling | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | $ 1,554,442 | $ 1,347,448 | $ 973,464 | ||||||||
Property, Plant and Equipment, Net | 2,470,579 | 2,892,910 | 2,470,579 | 2,892,910 | 3,163,425 | ||||||
Goodwill | 13,430 | 65,633 | 13,430 | 65,633 | 54,198 | ||||||
Outside the U.S | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | 1,488,941 | 1,710,171 | 1,590,821 | ||||||||
Property, Plant and Equipment, Net | 2,459,970 | 2,574,960 | 2,459,970 | 2,574,960 | 2,946,140 | ||||||
Goodwill | $ 14,950 | $ 118,281 | 14,950 | 118,281 | 119,028 | ||||||
Saudi Arabia | |||||||||||
Financial information with respect to entity's operations by geographic area | |||||||||||
Operating revenues | $ 696,400 | $ 764,500 | $ 727,700 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | $ 714,261 | $ 758,076 | $ 771,406 | $ 799,640 | $ 782,080 | $ 779,425 | $ 761,920 | $ 734,194 | $ 3,043,383 | $ 3,057,619 | $ 2,564,285 |
U.S. Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 1,554,442 | 1,347,448 | 973,464 | ||||||||
Saudi Arabia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 696,400 | 764,500 | 727,700 | ||||||||
Operating segment | Lower 48 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 1,365,077 | 1,272,588 | 1,011,852 | ||||||||
Operating segment | Offshore Gulf Of Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 170,262 | 136,722 | 77,015 | ||||||||
Operating segment | ALASKA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 67,899 | 53,909 | 52,108 | ||||||||
Operating segment | Canada Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 78,875 | 140,531 | 96,601 | ||||||||
Operating segment | Middle East And Asia [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 865,889 | 950,222 | 896,065 | ||||||||
Operating segment | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 373,065 | 384,249 | 391,893 | ||||||||
Operating segment | Europe Africa And CIS [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 225,301 | 240,274 | 211,921 | ||||||||
Operating segment | U.S. Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 1,240,936 | 1,083,227 | 805,223 | ||||||||
Operating segment | U.S. Drilling | Lower 48 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 1,021,879 | 910,819 | 681,669 | ||||||||
Operating segment | U.S. Drilling | Offshore Gulf Of Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 156,931 | 122,946 | 75,994 | ||||||||
Operating segment | U.S. Drilling | ALASKA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 62,126 | 49,462 | 47,560 | ||||||||
Operating segment | Canada Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 68,274 | 105,000 | 82,929 | ||||||||
Operating segment | Canada Drilling | Canada Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 68,274 | 105,000 | 82,929 | ||||||||
Operating segment | International Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 1,324,142 | 1,469,038 | 1,474,060 | ||||||||
Operating segment | International Drilling | Middle East And Asia [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 765,493 | 888,500 | 875,175 | ||||||||
Operating segment | International Drilling | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 355,189 | 360,385 | 388,235 | ||||||||
Operating segment | International Drilling | Europe Africa And CIS [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 203,460 | 220,153 | 210,650 | ||||||||
Operating segment | Drilling Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 252,790 | 250,242 | 140,701 | ||||||||
Operating segment | Drilling Solutions | Lower 48 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 170,639 | 173,219 | 118,574 | ||||||||
Operating segment | Drilling Solutions | Offshore Gulf Of Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 13,331 | 13,776 | 1,021 | ||||||||
Operating segment | Drilling Solutions | ALASKA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 4,787 | 3,670 | 3,925 | ||||||||
Operating segment | Drilling Solutions | Canada Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 1,749 | 5,849 | 6,054 | ||||||||
Operating segment | Drilling Solutions | Middle East And Asia [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 43,941 | 35,486 | 7,397 | ||||||||
Operating segment | Drilling Solutions | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 15,558 | 15,350 | 3,266 | ||||||||
Operating segment | Drilling Solutions | Europe Africa And CIS [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 2,785 | 2,892 | 464 | ||||||||
Operating segment | Rig Technologies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 260,226 | 270,988 | 234,542 | ||||||||
Operating segment | Rig Technologies | Lower 48 | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 172,559 | 188,550 | 211,609 | ||||||||
Operating segment | Rig Technologies | ALASKA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 986 | 777 | 623 | ||||||||
Operating segment | Rig Technologies | Canada Drilling | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 8,852 | 29,682 | 7,618 | ||||||||
Operating segment | Rig Technologies | Middle East And Asia [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 56,455 | 26,236 | 13,493 | ||||||||
Operating segment | Rig Technologies | Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 2,318 | 8,514 | 392 | ||||||||
Operating segment | Rig Technologies | Europe Africa And CIS [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | 19,056 | 17,229 | 807 | ||||||||
Other reconciling items (1) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | (102,985) | (120,876) | (173,170) | ||||||||
Other reconciling items (1) | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | (102,985) | (120,876) | (173,170) | ||||||||
Other reconciling items (1) | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | (102,985) | (120,876) | (173,170) | ||||||||
Other reconciling items (1) | Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Operating revenues | $ (102,985) | $ (120,876) | $ (173,170) |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts receivables current | ||
Contract Receivables | $ 507 | $ 791.2 |
Contract with customer assets current | ||
Contract Assets (Current) | 48.6 | 55.8 |
Contract with customer non-current asset | ||
Contract Assets (Long-term) | 24.9 | 32.3 |
Contract with customer liability current | ||
Contract Liabilities (Current) | 66.8 | 116.7 |
Contract with customer liability non-current | ||
Contract Liabilities (Long-term) | $ 70.5 | $ 69.7 |
Contract Asset Balance | ||
Contract percentage recognized | 60.00% | |
2020 | 20.00% | |
2021 or thereafter | 20.00% |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Remaining performance obligations | |
Percentage of remaining performance obligation expected to be recognized in period | 13.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Remaining performance obligations | |
Percentage of remaining performance obligation recognized | 65.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Remaining performance obligations | |
Revenue, Remaining performance obligation, expected timing of satisfaction period | 12 months |
Percentage of remaining performance obligation expected to be recognized in period | 22.00% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease Practical Expedient Transition Approach | true | |
Lease, Practical Expedients, Package [true false] | true | |
Lease Practical Expedient Lease Capitalization | true | |
Lease Practical Expedient Separate Lease Non Lease Components | false | |
Lease Practical Expedient Land Easement | true | |
Right of use assets | $ 46,647 | |
Lease liability | 46,875 | |
Adjustment to retained earnings | 0 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | $ 42,800 | |
Lease liability | $ 42,800 | |
Adjustment | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right of use assets | 42,800 | |
Lease liability | $ 42,800 |
Leases - Position Costs (Detail
Leases - Position Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Assets [Abstract] | |||
Right of use assets | $ 46,647 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Right of use assets | ||
Lease Assets | $ 46,647 | ||
Liabilities, Current [Abstract] | |||
Operating lease liability, current | $ 13,479 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Operating lease liability, current | ||
Liabilities, Noncurrent [Abstract] | |||
Operating lease liability, noncurrent | $ 33,396 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liability, noncurrent | ||
Lease liability | $ 46,875 | ||
Lease, Cost [Abstract] | |||
Operating lease cost | 16,154 | ||
Short-term lease cost | 2,568 | ||
Variable lease cost | 605 | ||
Total lease cost | 19,327 | ||
Other Information [Abstract] | |||
Operating cash flows for operating leases | 16,154 | ||
Operating leases | $ 17,852 | ||
Lease Terms And Discount Rates [Abstract] | |||
Weighted-average remaining lease term - operating leases | 7 years 1 month 17 days | ||
Weighted-average discount rate - operating leases | 5.97% | ||
Undiscounted Cash Flows | |||
2020 | $ 15,586 | ||
2021 | 10,344 | ||
2022 | 7,099 | ||
2023 | 4,816 | ||
2024 | 2,577 | ||
Thereafter | 17,649 | ||
Total undiscounted lease liability | 58,071 | ||
Less: amount of lease payments representing interest | (11,196) | ||
Long-term lease obligations | 46,875 | ||
Minimum rental commitments under non cancellable operating leases | |||
2019 | $ 10,701 | ||
2020 | 7,104 | ||
2021 | 3,774 | ||
2022 | 2,356 | ||
2023 | 1,538 | ||
Thereafter | 7,482 | ||
Total minimum lease payments | $ 32,955 | ||
Accounting Standards Update 2016-02 | |||
Assets [Abstract] | |||
Right of use assets | $ 42,800 | ||
Liabilities, Noncurrent [Abstract] | |||
Lease liability | 42,800 | ||
Undiscounted Cash Flows | |||
Long-term lease obligations | $ 42,800 | ||
Adjustment | Accounting Standards Update 2016-02 | |||
Assets [Abstract] | |||
Right of use assets | 42,800 | ||
Liabilities, Noncurrent [Abstract] | |||
Lease liability | 42,800 | ||
Undiscounted Cash Flows | |||
Long-term lease obligations | $ 42,800 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 435,990 | $ 447,766 | $ 336,997 | $ 264,093 |
Short-term investments | 16,506 | 34,036 | ||
Accounts receivable, net | 453,042 | 756,320 | ||
Inventory, net | 176,341 | 165,587 | ||
Assets held for sale | 2,530 | 12,250 | ||
Other current assets | 164,257 | 177,604 | ||
Total current assets | 1,248,666 | 1,593,563 | ||
Property, plant and equipment, net | 4,930,549 | 5,467,870 | 6,109,565 | |
Goodwill | 28,380 | 183,914 | 173,226 | |
Deferred income taxes | 305,844 | 345,091 | ||
Other long-term assets | 247,219 | 263,506 | ||
Total assets (1) | 6,760,658 | 7,853,944 | ||
Current liabilities: | ||||
Current portion of debt | 561 | |||
Trade accounts payable | 295,159 | 392,843 | ||
Accrued liabilities | 333,282 | 417,912 | ||
Income taxes payable | 14,628 | 20,761 | ||
Current lease liabilities | 13,479 | |||
Total current liabilities | 656,548 | 832,077 | ||
Long-term debt | 3,333,220 | 3,585,884 | ||
Other long-term liabilities | 292,184 | 274,485 | ||
Deferred income taxes | 3,149 | 6,311 | ||
Total liabilities (1) | 4,285,101 | 4,698,757 | ||
Redeemable noncontrolling interest in subsidiary | 425,392 | 404,861 | ||
Shareholders' equity | 1,982,811 | 2,700,850 | ||
Noncontrolling interest | 67,354 | 49,476 | ||
Total equity | 2,050,165 | 2,750,326 | $ 2,938,773 | $ 3,254,795 |
Total liabilities and equity | 6,760,658 | 7,853,944 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Intercompany receivables | (2,662) | (316,686) | ||
Investment in consolidated affiliates | (12,008,280) | (12,232,982) | ||
Deferred income taxes | (431,441) | (388,089) | ||
Other long-term assets | (7,325) | (14,325) | ||
Total assets (1) | (12,449,708) | (12,952,082) | ||
Current liabilities: | ||||
Long-term debt | (7,325) | (14,325) | ||
Deferred income taxes | (431,441) | (388,089) | ||
Intercompany payable | (2,662) | (316,686) | ||
Total liabilities (1) | (441,428) | (719,100) | ||
Shareholders' equity | (12,008,280) | (12,232,982) | ||
Total equity | (12,008,280) | (12,232,982) | ||
Total liabilities and equity | (12,449,708) | (12,952,082) | ||
Parent Company | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 319 | 474 | ||
Other current assets | 50 | 50 | ||
Total current assets | 369 | 524 | ||
Intercompany receivables | 51 | 95,946 | ||
Investment in consolidated affiliates | 2,001,607 | 2,658,827 | ||
Total assets (1) | 2,002,027 | 2,755,297 | ||
Current liabilities: | ||||
Trade accounts payable | 128 | 132 | ||
Accrued liabilities | 8,579 | 28,815 | ||
Total current liabilities | 8,707 | 28,947 | ||
Intercompany payable | 10,508 | 25,500 | ||
Total liabilities (1) | 19,215 | 54,447 | ||
Shareholders' equity | 1,982,812 | 2,700,850 | ||
Total equity | 1,982,812 | 2,700,850 | ||
Total liabilities and equity | 2,002,027 | 2,755,297 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 38 | 42 | ||
Other current assets | 433 | |||
Total current assets | 38 | 475 | ||
Intercompany receivables | 218,129 | |||
Investment in consolidated affiliates | 5,780,656 | 5,494,886 | ||
Deferred income taxes | 431,441 | 388,089 | ||
Other long-term assets | 99 | 142 | ||
Total assets (1) | 6,212,234 | 6,101,721 | ||
Current liabilities: | ||||
Trade accounts payable | 1 | 14 | ||
Accrued liabilities | 51,701 | 62,830 | ||
Total current liabilities | 51,702 | 62,844 | ||
Long-term debt | 3,340,545 | 3,600,209 | ||
Other long-term liabilities | 29,331 | 29,331 | ||
Intercompany payable | 231,759 | |||
Total liabilities (1) | 3,653,337 | 3,692,384 | ||
Shareholders' equity | 2,558,897 | 2,409,337 | ||
Total equity | 2,558,897 | 2,409,337 | ||
Total liabilities and equity | 6,212,234 | 6,101,721 | ||
Other Subsidiaries (Non-Guarantors) | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 435,633 | 447,250 | ||
Short-term investments | 16,506 | 34,036 | ||
Accounts receivable, net | 453,042 | 756,320 | ||
Inventory, net | 176,341 | 165,587 | ||
Assets held for sale | 2,530 | 12,250 | ||
Other current assets | 164,207 | 177,121 | ||
Total current assets | 1,248,259 | 1,592,564 | ||
Property, plant and equipment, net | 4,930,549 | 5,467,870 | ||
Goodwill | 28,380 | 183,914 | ||
Intercompany receivables | 2,611 | 2,611 | ||
Investment in consolidated affiliates | 4,226,017 | 4,079,269 | ||
Deferred income taxes | 305,844 | 345,091 | ||
Other long-term assets | 254,445 | 277,689 | ||
Total assets (1) | 10,996,105 | 11,949,008 | ||
Current liabilities: | ||||
Current portion of debt | 561 | |||
Trade accounts payable | 295,030 | 392,697 | ||
Accrued liabilities | 273,002 | 326,267 | ||
Income taxes payable | 14,628 | 20,761 | ||
Current lease liabilities | 13,479 | |||
Total current liabilities | 596,139 | 740,286 | ||
Other long-term liabilities | 262,853 | 245,154 | ||
Deferred income taxes | 434,590 | 394,400 | ||
Intercompany payable | (239,605) | 291,186 | ||
Total liabilities (1) | 1,053,977 | 1,671,026 | ||
Redeemable noncontrolling interest in subsidiary | 425,392 | 404,861 | ||
Shareholders' equity | 9,449,382 | 9,823,645 | ||
Noncontrolling interest | 67,354 | 49,476 | ||
Total equity | 9,516,736 | 9,873,121 | ||
Total liabilities and equity | $ 10,996,105 | $ 11,949,008 | ||
Nabors Delaware [Member] | ||||
Condensed Consolidating Financial Information | ||||
Ownership percentage | 100.00% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Statements of Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues and other income: | |||||||||||
Operating revenues | $ 714,261 | $ 758,076 | $ 771,406 | $ 799,640 | $ 782,080 | $ 779,425 | $ 761,920 | $ 734,194 | $ 3,043,383 | $ 3,057,619 | $ 2,564,285 |
Earnings (losses) from unconsolidated affiliates | (5) | 1 | 7 | ||||||||
Investment income (loss) | 10,218 | (9,499) | 1,194 | ||||||||
Total revenues and other income | 3,053,596 | 3,048,121 | 2,565,486 | ||||||||
Costs and other deductions: | |||||||||||
Direct costs | 1,929,331 | 1,976,974 | 1,718,069 | ||||||||
General and administrative expenses | 258,731 | 265,822 | 251,184 | ||||||||
Research and engineering | 50,359 | 56,147 | 51,069 | ||||||||
Depreciation and amortization | 876,091 | 866,870 | 842,943 | ||||||||
Interest expense, net | 204,311 | 227,124 | 222,889 | ||||||||
Impairments and other charges | 290,471 | 144,446 | 44,536 | ||||||||
Other, net | 33,224 | 29,532 | 14,880 | ||||||||
Total costs and other deductions | 3,642,518 | 3,566,915 | 3,145,570 | ||||||||
Income (loss) from continuing operations before income taxes | (588,922) | (518,794) | (580,084) | ||||||||
Income tax expense (benefit) | 91,576 | 79,269 | (82,970) | ||||||||
Income (loss) from continuing operations, net of tax | (284,533) | (99,788) | (192,801) | (103,376) | (165,551) | (93,710) | (195,215) | (143,587) | (680,498) | (598,063) | (497,114) |
Income (loss) from discontinued operations, net of tax | 22 | 157 | (34) | (157) | (71) | (13,933) | (584) | (75) | (12) | (14,663) | (43,519) |
Net income (loss) | (284,511) | (99,631) | (192,835) | (103,533) | (165,622) | (107,643) | (195,799) | (143,662) | (680,510) | (612,726) | (540,633) |
Less: Net (income) loss attributable to noncontrolling interest | 21,827 | (19,297) | (10,729) | (14,176) | (17,796) | (6,934) | (2,953) | (539) | (22,375) | (28,222) | (6,178) |
Net income (loss) attributable to Nabors | (262,684) | (118,928) | (203,564) | (117,709) | (183,418) | (114,577) | (198,752) | (144,201) | (702,885) | (640,948) | (546,811) |
Less: preferred stock dividends | (4,309) | (4,310) | (4,312) | (4,313) | (4,312) | (4,313) | (3,680) | (17,244) | (12,305) | ||
Net income (loss) attributable to Nabors common shareholders | $ (266,993) | $ (123,238) | $ (207,876) | $ (122,022) | $ (187,730) | $ (118,890) | $ (202,432) | $ (144,201) | (720,129) | (653,253) | (546,811) |
Consolidating Adjustments | |||||||||||
Revenues and other income: | |||||||||||
Earnings (losses) from consolidated affiliates | 267,364 | 375,242 | 853,033 | ||||||||
Investment income (loss) | (2,112) | (12,485) | (11,917) | ||||||||
Total revenues and other income | 265,252 | 362,757 | 841,116 | ||||||||
Costs and other deductions: | |||||||||||
General and administrative expenses | (1,572) | (683) | (665) | ||||||||
Other, net | 1,572 | 683 | 665 | ||||||||
Income (loss) from continuing operations before income taxes | 265,252 | 362,757 | 841,116 | ||||||||
Income (loss) from continuing operations, net of tax | 265,252 | 362,757 | 841,116 | ||||||||
Net income (loss) | 265,252 | 362,757 | 841,116 | ||||||||
Net income (loss) attributable to Nabors | 265,252 | 362,757 | 841,116 | ||||||||
Net income (loss) attributable to Nabors common shareholders | 265,252 | 362,757 | 841,116 | ||||||||
Parent Company | Reportable Legal Entities | |||||||||||
Revenues and other income: | |||||||||||
Earnings (losses) from consolidated affiliates | (693,450) | (629,060) | (528,180) | ||||||||
Investment income (loss) | 2 | 17 | |||||||||
Total revenues and other income | (693,450) | (629,058) | (528,163) | ||||||||
Costs and other deductions: | |||||||||||
General and administrative expenses | 8,255 | 9,725 | 10,995 | ||||||||
Other, net | 1,043 | 1,803 | 7,662 | ||||||||
Intercompany interest expense, net | 137 | 362 | (9) | ||||||||
Total costs and other deductions | 9,435 | 11,890 | 18,648 | ||||||||
Income (loss) from continuing operations before income taxes | (702,885) | (640,948) | (546,811) | ||||||||
Income (loss) from continuing operations, net of tax | (702,885) | (640,948) | (546,811) | ||||||||
Net income (loss) | (702,885) | (640,948) | (546,811) | ||||||||
Net income (loss) attributable to Nabors | (702,885) | (640,948) | (546,811) | ||||||||
Less: preferred stock dividends | (17,244) | (12,305) | |||||||||
Net income (loss) attributable to Nabors common shareholders | (720,129) | (653,253) | (546,811) | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenues and other income: | |||||||||||
Earnings (losses) from consolidated affiliates | 285,612 | 218,539 | 18,380 | ||||||||
Investment income (loss) | 63 | ||||||||||
Total revenues and other income | 285,612 | 218,539 | 18,443 | ||||||||
Costs and other deductions: | |||||||||||
Direct costs | 6 | ||||||||||
General and administrative expenses | 673 | 635 | 715 | ||||||||
Depreciation and amortization | 125 | 125 | 125 | ||||||||
Interest expense, net | 204,963 | 231,971 | 232,103 | ||||||||
Impairments and other charges | 5,269 | ||||||||||
Other, net | (17,277) | 19,033 | |||||||||
Total costs and other deductions | 188,490 | 238,000 | 251,976 | ||||||||
Income (loss) from continuing operations before income taxes | 97,122 | (19,461) | (233,533) | ||||||||
Income tax expense (benefit) | (43,352) | (54,740) | 109,700 | ||||||||
Income (loss) from continuing operations, net of tax | 140,474 | 35,279 | (343,233) | ||||||||
Net income (loss) | 140,474 | 35,279 | (343,233) | ||||||||
Net income (loss) attributable to Nabors | 140,474 | 35,279 | (343,233) | ||||||||
Net income (loss) attributable to Nabors common shareholders | 140,474 | 35,279 | (343,233) | ||||||||
Other Subsidiaries (Non-Guarantors) | Reportable Legal Entities | |||||||||||
Revenues and other income: | |||||||||||
Operating revenues | 3,043,383 | 3,057,619 | 2,564,285 | ||||||||
Earnings (losses) from unconsolidated affiliates | (5) | 1 | 7 | ||||||||
Earnings (losses) from consolidated affiliates | 140,474 | 35,279 | (343,233) | ||||||||
Investment income (loss) | 12,330 | 2,984 | 13,031 | ||||||||
Total revenues and other income | 3,196,182 | 3,095,883 | 2,234,090 | ||||||||
Costs and other deductions: | |||||||||||
Direct costs | 1,929,325 | 1,976,974 | 1,718,069 | ||||||||
General and administrative expenses | 251,375 | 256,145 | 240,139 | ||||||||
Research and engineering | 50,359 | 56,147 | 51,069 | ||||||||
Depreciation and amortization | 875,966 | 866,745 | 842,818 | ||||||||
Interest expense, net | (652) | (4,847) | (9,214) | ||||||||
Impairments and other charges | 290,471 | 139,177 | 44,536 | ||||||||
Other, net | 47,886 | 27,046 | (12,480) | ||||||||
Intercompany interest expense, net | (137) | (362) | 9 | ||||||||
Total costs and other deductions | 3,444,593 | 3,317,025 | 2,874,946 | ||||||||
Income (loss) from continuing operations before income taxes | (248,411) | (221,142) | (640,856) | ||||||||
Income tax expense (benefit) | 134,928 | 134,009 | (192,670) | ||||||||
Income (loss) from continuing operations, net of tax | (383,339) | (355,151) | (448,186) | ||||||||
Income (loss) from discontinued operations, net of tax | (12) | (14,663) | (43,519) | ||||||||
Net income (loss) | (383,351) | (369,814) | (491,705) | ||||||||
Less: Net (income) loss attributable to noncontrolling interest | (22,375) | (28,222) | (6,178) | ||||||||
Net income (loss) attributable to Nabors | (405,726) | (398,036) | (497,883) | ||||||||
Net income (loss) attributable to Nabors common shareholders | $ (405,726) | $ (398,036) | $ (497,883) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | $ (262,684) | $ (118,928) | $ (203,564) | $ (117,709) | $ (183,418) | $ (114,577) | $ (198,752) | $ (144,201) | $ (702,885) | $ (640,948) | $ (546,811) |
Other comprehensive income (loss), before tax: | |||||||||||
Translation adjustment attributable to Nabors | 16,943 | (31,962) | 28,372 | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | (6,061) | ||||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 970 | ||||||||||
Unrealized gains (losses) on marketable securities | (5,091) | ||||||||||
Pension liability amortization and adjustment | 217 | 216 | (275) | ||||||||
Unrealized gains (losses) and amortization on cash flow hedges. | 567 | 567 | 613 | ||||||||
Adoption of ASU No. 2016-01 | (9,144) | ||||||||||
Other comprehensive income (loss), before tax | 17,727 | (40,323) | 23,619 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 190 | 187 | 315 | ||||||||
Other comprehensive income (loss), net of tax | 17,537 | (40,510) | 23,304 | ||||||||
Comprehensive income (loss) attributable to Nabors | (685,348) | (681,458) | (523,507) | ||||||||
Net income (loss) attributable to noncontrolling interest | $ (21,827) | $ 19,297 | $ 10,729 | $ 14,176 | $ 17,796 | $ 6,934 | $ 2,953 | $ 539 | 22,375 | 28,222 | 6,178 |
Translation adjustment attributable to noncontrolling interest | 55 | (251) | 282 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 22,430 | 27,971 | 6,460 | ||||||||
Comprehensive income (loss) | (662,918) | (653,487) | (517,047) | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | 265,252 | 362,757 | 841,116 | ||||||||
Other comprehensive income (loss), before tax: | |||||||||||
Translation adjustment attributable to Nabors | (16,940) | 31,958 | (28,372) | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | 6,061 | ||||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | (970) | ||||||||||
Unrealized gains (losses) on marketable securities | 5,091 | ||||||||||
Pension liability amortization and adjustment | (651) | (648) | 825 | ||||||||
Unrealized gains (losses) and amortization on cash flow hedges. | (1,134) | (1,134) | (1,226) | ||||||||
Adoption of ASU No. 2016-01 | 9,144 | ||||||||||
Other comprehensive income (loss), before tax | (18,725) | 39,320 | (23,682) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (570) | (561) | (945) | ||||||||
Other comprehensive income (loss), net of tax | (18,155) | 39,881 | (22,737) | ||||||||
Comprehensive income (loss) attributable to Nabors | 247,097 | 402,638 | 818,379 | ||||||||
Comprehensive income (loss) | 247,097 | 402,638 | 818,379 | ||||||||
Parent Company | Reportable Legal Entities | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | (702,885) | (640,948) | (546,811) | ||||||||
Other comprehensive income (loss), before tax: | |||||||||||
Translation adjustment attributable to Nabors | 16,943 | (31,962) | 28,372 | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | (6,061) | ||||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 970 | ||||||||||
Unrealized gains (losses) on marketable securities | (5,091) | ||||||||||
Pension liability amortization and adjustment | 217 | 216 | (275) | ||||||||
Unrealized gains (losses) and amortization on cash flow hedges. | 567 | 567 | 613 | ||||||||
Adoption of ASU No. 2016-01 | (9,144) | ||||||||||
Other comprehensive income (loss), before tax | 17,727 | (40,323) | 23,619 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 190 | 187 | 315 | ||||||||
Other comprehensive income (loss), net of tax | 17,537 | (40,510) | 23,304 | ||||||||
Comprehensive income (loss) attributable to Nabors | (685,348) | (681,458) | (523,507) | ||||||||
Comprehensive income (loss) | (685,348) | (681,458) | (523,507) | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | 140,474 | 35,279 | (343,233) | ||||||||
Other comprehensive income (loss), before tax: | |||||||||||
Translation adjustment attributable to Nabors | (3) | 4 | |||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Pension liability amortization and adjustment | 217 | 216 | (275) | ||||||||
Unrealized gains (losses) and amortization on cash flow hedges. | 567 | 567 | 613 | ||||||||
Other comprehensive income (loss), before tax | 781 | 787 | 338 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 190 | 187 | 315 | ||||||||
Other comprehensive income (loss), net of tax | 591 | 600 | 23 | ||||||||
Comprehensive income (loss) attributable to Nabors | 141,065 | 35,879 | (343,210) | ||||||||
Comprehensive income (loss) | 141,065 | 35,879 | (343,210) | ||||||||
Other Subsidiaries (Non-Guarantors) | Reportable Legal Entities | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) attributable to Nabors | (405,726) | (398,036) | (497,883) | ||||||||
Other comprehensive income (loss), before tax: | |||||||||||
Translation adjustment attributable to Nabors | 16,943 | (31,962) | 28,372 | ||||||||
Unrealized gains (losses) on marketable securities: | |||||||||||
Unrealized gains (losses) on marketable securities | (6,061) | ||||||||||
Less: reclassification adjustment for (gains) losses included in net income (loss) | 970 | ||||||||||
Unrealized gains (losses) on marketable securities | (5,091) | ||||||||||
Pension liability amortization and adjustment | 434 | 432 | (550) | ||||||||
Unrealized gains (losses) and amortization on cash flow hedges. | 567 | 567 | 613 | ||||||||
Adoption of ASU No. 2016-01 | (9,144) | ||||||||||
Other comprehensive income (loss), before tax | 17,944 | (40,107) | 23,344 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 380 | 374 | 630 | ||||||||
Other comprehensive income (loss), net of tax | 17,564 | (40,481) | 22,714 | ||||||||
Comprehensive income (loss) attributable to Nabors | (388,162) | (438,517) | (475,169) | ||||||||
Net income (loss) attributable to noncontrolling interest | 22,375 | 28,222 | 6,178 | ||||||||
Translation adjustment attributable to noncontrolling interest | 55 | (251) | 282 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 22,430 | 27,971 | 6,460 | ||||||||
Comprehensive income (loss) | $ (365,732) | $ (410,546) | $ (468,709) |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidating Statements Of Cash Flows | |||
Net cash provided by (used for) operating activities | $ 684,558 | $ 325,773 | $ 62,756 |
Cash flows from investing activities: | |||
Purchases of investments | (4,323) | (676) | (6,722) |
Sales and maturities of investments | 18,849 | 4,287 | 13,069 |
Cash paid for acquisition of businesses, net of cash acquired | (2,929) | (20,859) | 12,319 |
Capital expenditures | (427,741) | (458,938) | (574,467) |
Proceeds from sales of assets and insurance claims | 60,288 | 109,098 | 57,933 |
Net cash (used for) provided by investing activities | (355,856) | (367,088) | (497,868) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 800,000 | 411,200 | |
Reduction of long-term debt | (455,360) | (878,278) | (381,814) |
Debt issuance costs | (1,767) | (21,277) | (11,043) |
Proceeds from revolving credit facilities | 1,050,000 | 1,135,000 | 725,000 |
Reduction in revolving credit facilities | (865,000) | (1,475,000) | (215,000) |
Payments for short-term borrowings | (561) | (543) | |
Proceeds from (payments for) commercial paper, net | (40,000) | 40,000 | |
Proceeds from issuance of common shares, net of issuance costs | 301,404 | 8,300 | |
Dividends to common and preferred shareholders | (49,583) | ||
Redeemable noncontrolling interest contribution | 156,935 | 61,123 | |
Noncontrolling interest contribution | 20,000 | ||
Distributions to noncontrolling interest | (4,552) | (5,452) | (7,272) |
Other changes | (4,750) | (8,912) | (8,399) |
Cash proceeds (payments) from equity component of exchangeable debt | 159,952 | ||
Purchase of capped call hedge transactions | (40,250) | ||
Dividends to common and preferred shareholders | (49,583) | (87,098) | (68,503) |
Proceeds from issuance of preferred stock, net of issuance costs | 277,927 | ||
Payments on term loan | (162,500) | ||
Proceeds from short-term borrowings | 380 | ||
Repurchase of common shares | (18,071) | ||
Net cash (used for) provided by financing activities | (331,573) | 155,629 | 512,180 |
Effect of exchange rate changes on cash and cash equivalents | (6,171) | (5,263) | (29) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (9,042) | 109,051 | 77,039 |
Cash and cash equivalents and restricted cash, beginning of period | 451,080 | 342,029 | 264,990 |
Cash and cash equivalents and restricted cash, end of period | 442,038 | 451,080 | 342,029 |
Consolidating Adjustments | |||
Condensed Consolidating Statements Of Cash Flows | |||
Net cash provided by (used for) operating activities | (64,358) | (47,497) | (132,986) |
Cash flows from investing activities: | |||
Cash paid for investments in consolidated affiliates | 8,500 | 794,000 | 86,060 |
Net cash (used for) provided by investing activities | 8,500 | 794,000 | 86,060 |
Cash flows from financing activities: | |||
Dividends to common and preferred shareholders | 4,752 | ||
Proceeds from parent contributions | (8,500) | (794,000) | (86,060) |
Distribution from subsidiary to parent | 59,606 | 35,012 | 121,070 |
Dividends to common and preferred shareholders | 12,485 | 11,916 | |
Net cash (used for) provided by financing activities | 55,858 | (746,503) | 46,926 |
Parent Company | Reportable Legal Entities | |||
Condensed Consolidating Statements Of Cash Flows | |||
Net cash provided by (used for) operating activities | 79,910 | 86,504 | 143,444 |
Cash flows from investing activities: | |||
Cash paid for investments in consolidated affiliates | (587,500) | (100) | |
Net cash (used for) provided by investing activities | (587,500) | (100) | |
Cash flows from financing activities: | |||
Proceeds from issuance of common shares, net of issuance costs | 6 | 301,404 | 8,299 |
Dividends to common and preferred shareholders | (54,347) | ||
Proceeds from issuance of intercompany debt | 6,600 | 45,500 | |
Paydown of intercompany debt | (27,700) | (21,000) | (102,000) |
Other changes | (4,624) | (3,869) | (8,210) |
Dividends to common and preferred shareholders | (99,583) | (80,419) | |
Proceeds from issuance of preferred stock, net of issuance costs | 277,927 | ||
Repurchase of common shares | (18,071) | ||
Proceeds from (payments for) issuance of intercompany debt | 57,000 | ||
Net cash (used for) provided by financing activities | (80,065) | 500,379 | (143,401) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (155) | (617) | (57) |
Cash and cash equivalents and restricted cash, beginning of period | 474 | 1,091 | 1,148 |
Cash and cash equivalents and restricted cash, end of period | 319 | 474 | 1,091 |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Consolidating Statements Of Cash Flows | |||
Net cash provided by (used for) operating activities | (179,265) | (208,943) | (90,229) |
Cash flows from investing activities: | |||
Cash paid for acquisition of businesses, net of cash acquired | (20,859) | ||
Change in intercompany balances | 449,888 | 502,856 | (599,974) |
Net cash (used for) provided by investing activities | 449,888 | 481,997 | (599,974) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 800,000 | 411,200 | |
Reduction of long-term debt | (455,360) | (878,278) | (270,269) |
Debt issuance costs | (1,767) | (21,277) | (11,043) |
Proceeds from revolving credit facilities | 1,050,000 | 1,135,000 | 725,000 |
Reduction in revolving credit facilities | (865,000) | (1,475,000) | (215,000) |
Proceeds from (payments for) commercial paper, net | (40,000) | 40,000 | |
Paydown of intercompany debt | (7,000) | (20,000) | |
Proceeds from parent contributions | 8,500 | 206,500 | 42,980 |
Cash proceeds (payments) from equity component of exchangeable debt | 159,952 | ||
Purchase of capped call hedge transactions | (40,250) | ||
Payments on term loan | (162,500) | ||
Proceeds from (payments for) issuance of intercompany debt | 20,000 | ||
Net cash (used for) provided by financing activities | (270,627) | (273,055) | 680,070 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4) | (1) | (10,133) |
Cash and cash equivalents and restricted cash, beginning of period | 43 | 44 | 10,177 |
Cash and cash equivalents and restricted cash, end of period | 39 | 43 | 44 |
Other Subsidiaries (Non-Guarantors) | Reportable Legal Entities | |||
Condensed Consolidating Statements Of Cash Flows | |||
Net cash provided by (used for) operating activities | 848,271 | 495,709 | 142,527 |
Cash flows from investing activities: | |||
Purchases of investments | (4,323) | (676) | (6,722) |
Sales and maturities of investments | 18,849 | 4,287 | 13,069 |
Cash paid for acquisition of businesses, net of cash acquired | (2,929) | 12,319 | |
Cash paid for investments in consolidated affiliates | (8,500) | (206,500) | (85,960) |
Capital expenditures | (427,741) | (458,938) | (574,467) |
Proceeds from sales of assets and insurance claims | 60,288 | 109,098 | 57,933 |
Change in intercompany balances | (449,888) | (502,856) | 599,974 |
Net cash (used for) provided by investing activities | (814,244) | (1,055,585) | 16,146 |
Cash flows from financing activities: | |||
Reduction of long-term debt | (111,545) | ||
Payments for short-term borrowings | (561) | (543) | |
Proceeds from issuance of common shares, net of issuance costs | (6) | 1 | |
Dividends to common and preferred shareholders | 12 | ||
Redeemable noncontrolling interest contribution | 156,935 | 61,123 | |
Noncontrolling interest contribution | 20,000 | ||
Distributions to noncontrolling interest | (4,552) | (5,452) | (7,272) |
Proceeds from issuance of intercompany debt | (6,600) | (45,500) | |
Paydown of intercompany debt | 34,700 | 21,000 | 122,000 |
Proceeds from parent contributions | 587,500 | 43,080 | |
Distribution from subsidiary to parent | (59,606) | (35,012) | (121,070) |
Other changes | (126) | (5,043) | (189) |
Proceeds from short-term borrowings | 380 | ||
Proceeds from (payments for) issuance of intercompany debt | (77,000) | ||
Net cash (used for) provided by financing activities | (36,739) | 674,808 | (71,415) |
Effect of exchange rate changes on cash and cash equivalents | (6,171) | (5,263) | (29) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (8,883) | 109,669 | 87,229 |
Cash and cash equivalents and restricted cash, beginning of period | 450,563 | 340,894 | 253,665 |
Cash and cash equivalents and restricted cash, end of period | $ 441,680 | $ 450,563 | $ 340,894 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of period | $ 41,207 | $ 44,376 | $ 43,757 |
Charged to Costs and Other Deductions | 17,529 | 3,024 | 2,544 |
Charged to Other Accounts | (51) | (226) | 86 |
Deductions | 3,097 | (5,967) | (2,011) |
Balance at End of Period | 61,782 | 41,207 | 44,376 |
Inventory reserve | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of period | 27,854 | 28,934 | 26,537 |
Charged to Costs and Other Deductions | 11,808 | 5,897 | |
Charged to Other Accounts | 14,688 | ||
Deductions | (4,614) | (15,768) | (3,500) |
Balance at End of Period | 35,048 | 27,854 | 28,934 |
Valuation allowance on deferred tax assets | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of period | 1,917,390 | 1,869,490 | 1,807,728 |
Charged to Other Accounts | 862,611 | 47,900 | 61,762 |
Balance at End of Period | $ 2,780,001 | $ 1,917,390 | $ 1,869,490 |