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Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2021

    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-32657

NABORS INDUSTRIES LTD.

(Exact name of registrant as specified in its charter)

Bermuda

98-0363970

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

Crown House

Second Floor

4 Par-la-Ville Road

Hamilton, HM08

Bermuda

(Address of principal executive office)

(441) 292-1510

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common shares, $.05 par value per share

NBR

NYSE

Preferred shares, 6.00% Mandatory Convertible Preferred Shares, Series A, $.001 par value per share

NBR.PRA

NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer 

Accelerated Filer 

Non-accelerated Filer 

Smaller reporting company 

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

The number of common shares, par value $.05 per share, outstanding as of April 28, 2021 was 7,412,535, excluding 1,090,003 common shares held by our subsidiaries, or 8,502,538 in the aggregate.

Table of Contents

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

Index

PART I FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020

3

Condensed Consolidated Statements of Income (Loss) for the Three Months Ended March 31, 2021 and 2020

4

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2021 and 2020

5

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020

6

Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2021 and 2020

7

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4.

Controls and Procedures

34

PART II OTHER INFORMATION

Item 1.

Legal Proceedings

34

Item 1A.

Risk Factors

35

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 3.

Defaults Upon Senior Securities

35

Item 4.

Mine Safety Disclosures

35

Item 5.

Other Information

35

Item 6.

Exhibits

35

Signatures

37

2

Table of Contents

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31,

December 31,

    

2021

    

2020

 

(In thousands, except per

 

share amounts)

 

ASSETS

Current assets:

Cash and cash equivalents

$

417,544

$

472,246

Short-term investments

 

17

 

9,500

Accounts receivable, net of allowance of $67,467 and $69,807, respectively

 

331,453

 

362,977

Inventory, net

 

154,272

 

160,585

Assets held for sale

 

16,563

 

16,562

Other current assets

 

116,182

 

109,595

Total current assets

 

1,036,031

 

1,131,465

Property, plant and equipment, net

 

3,829,222

 

3,985,707

Deferred income taxes

 

248,863

 

247,171

Other long-term assets

 

140,790

 

139,085

Total assets (1)

$

5,254,906

$

5,503,428

LIABILITIES AND EQUITY

Current liabilities:

Trade accounts payable

$

234,944

$

220,922

Accrued liabilities

222,361

 

276,085

Income taxes payable

 

26,233

 

10,157

Current lease liabilities

 

7,259

 

8,305

Total current liabilities

 

490,797

 

515,469

Long-term debt

 

2,898,879

 

2,968,701

Other long-term liabilities

 

338,607

 

318,034

Deferred income taxes

 

2,502

 

1,576

Total liabilities (1)

 

3,730,785

 

3,803,780

Commitments and contingencies (Note 8)

Redeemable noncontrolling interest in subsidiary (Note 3)

396,167

 

442,840

Shareholders’ equity:

Preferred shares, par value $0.001 per share:

Series A 6% Cumulative Mandatory Convertible; $50 per share liquidation preference; outstanding 4,870 and 4,870, respectively

 

5

 

5

Common shares, par value $0.05 per share:

Authorized common shares 32,000; issued 8,503 and 8,383, respectively

 

417

 

419

Capital in excess of par value

 

3,429,089

 

3,423,935

Accumulated other comprehensive income (loss)

 

(10,756)

 

(11,124)

Retained earnings (accumulated deficit)

 

(1,089,251)

 

(946,100)

Less: treasury shares, at cost, 1,090 and 1,090 common shares, respectively

 

(1,315,751)

 

(1,315,751)

Total shareholders’ equity

 

1,013,753

 

1,151,384

Noncontrolling interest

 

114,201

 

105,424

Total equity

 

1,127,954

 

1,256,808

Total liabilities and equity

$

5,254,906

$

5,503,428

(1)The condensed consolidated balance sheet as of March 31, 2021 and December 31, 2020 include assets and liabilities of variable interest entities. See Note 3—Joint Ventures for additional information.

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Table of Contents

NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

Three Months Ended

March 31,

2021

2020

(In thousands, except per share amounts)

Revenues and other income:

Operating revenues

$

460,511

$

718,364

Investment income (loss)

 

1,263

 

(3,198)

Total revenues and other income

461,774

715,166

Costs and other deductions:

Direct costs

290,654

461,840

General and administrative expenses

54,660

57,384

Research and engineering

 

7,467

 

11,409

Depreciation and amortization

 

177,276

 

227,063

Interest expense

42,975

54,722

Impairments and other charges

 

2,483

 

276,434

Other, net

4,863

(17,110)

Total costs and other deductions

580,378

1,071,742

Income (loss) from continuing operations before income taxes

 

(118,604)

 

(356,576)

Income tax expense (benefit):

Current

 

10,903

 

(7,203)

Deferred

 

(1,178)

 

24,896

Total income tax expense (benefit)

 

9,725

 

17,693

Income (loss) from continuing operations, net of tax

 

(128,329)

 

(374,269)

Income (loss) from discontinued operations, net of tax

 

19

 

(93)

Net income (loss)

 

(128,310)

 

(374,362)

Less: Net (income) loss attributable to noncontrolling interest

 

(8,776)

 

(17,465)

Net income (loss) attributable to Nabors

(137,086)

(391,827)

Less: Preferred stock dividend

 

(3,653)

 

(3,652)

Net income (loss) attributable to Nabors common shareholders

$

(140,739)

$

(395,479)

Amounts attributable to Nabors common shareholders:

Net income (loss) from continuing operations

$

(140,758)

$

(395,386)

Net income (loss) from discontinued operations

19

(93)

Net income (loss) attributable to Nabors common shareholders

$

(140,739)

$

(395,479)

Earnings (losses) per share:

Basic from continuing operations

$

(20.16)

$

(56.72)

Basic from discontinued operations

 

 

(0.01)

Total Basic

$

(20.16)

$

(56.73)

Diluted from continuing operations

$

(20.16)

$

(56.72)

Diluted from discontinued operations

 

 

(0.01)

Total Diluted

$

(20.16)

$

(56.73)

Weighted-average number of common shares outstanding:

Basic

 

7,102

 

7,051

Diluted

 

7,102

 

7,051

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

Three Months Ended

 

    

March 31,

 

2021

2020

(In thousands)

 

Net income (loss) attributable to Nabors

$

(137,086)

$

(391,827)

Other comprehensive income (loss), before tax:

Translation adjustment attributable to Nabors

2,228

(17,365)

Pension liability amortization and adjustment

 

(1,848)

 

51

Unrealized gains (losses) and amortization on cash flow hedges

 

 

143

Other comprehensive income (loss), before tax

 

380

 

(17,171)

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

12

 

47

Other comprehensive income (loss), net of tax

 

368

 

(17,218)

Comprehensive income (loss) attributable to Nabors

 

(136,718)

 

(409,045)

Net income (loss) attributable to noncontrolling interest

 

8,776

 

17,465

Comprehensive income (loss) attributable to noncontrolling interest

 

8,776

 

17,465

Comprehensive income (loss)

$

(127,942)

$

(391,580)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

    

2021

    

2020

(In thousands)

Cash flows from operating activities:

Net income (loss)

$

(128,310)

$

(374,362)

Adjustments to net income (loss):

Depreciation and amortization

 

177,277

 

227,063

Deferred income tax expense (benefit)

 

(1,178)

 

24,903

Impairments and other charges

 

355

 

265,779

Amortization of debt discount and deferred financing costs

5,400

 

8,153

Losses (gains) on debt buyback

 

(8,062)

 

(15,742)

Losses (gains) on long-lived assets, net

 

8,524

 

1,391

Losses (gains) on investments, net

 

(315)

 

5,539

Provision (recovery) of bad debt

(2,339)

 

10,417

Share-based compensation

 

6,775

 

9,158

Foreign currency transaction losses (gains), net

 

2,365

 

(559)

Noncontrolling interest

(8,777)

 

(17,465)

Other

 

398

 

188

Changes in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable

 

32,017

 

(16,008)

Inventory

 

6,039

 

(1,421)

Other current assets

 

(6,476)

 

12,292

Other long-term assets

 

(4,949)

 

2,046

Trade accounts payable and accrued liabilities

 

(17,697)

 

(76,952)

Income taxes payable

 

15,766

 

4,475

Other long-term liabilities

 

2,677

 

(9,733)

Net cash provided by (used for) operating activities

 

79,490

 

59,162

Cash flows from investing activities:

Purchases of investments

 

(14)

 

Sales and maturities of investments

 

10,908

 

1,835

Capital expenditures

 

(40,852)

 

(59,430)

Proceeds from sales of assets and insurance claims

 

10,839

 

6,822

Net cash (used for) provided by investing activities

 

(19,119)

 

(50,773)

Cash flows from financing activities:

Proceeds from issuance of long-term debt

 

 

1,000,000

Reduction in long-term debt

(16,838)

 

(1,068,405)

Debt issuance costs

 

(2,421)

 

(15,737)

Proceeds from revolving credit facilities

 

95,000

 

795,000

Reduction in revolving credit facilities

(135,000)

 

(650,000)

Repurchase of common and preferred shares

 

(13,858)

Dividends to common and preferred shareholders

 

(3,662)

 

(7,937)

Distributions to noncontrolling interest

(49,077)

 

Other

(1,923)

 

(1,491)

Net cash (used for) provided by financing activities

 

(113,921)

 

37,572

Effect of exchange rate changes on cash and cash equivalents

(1,111)

 

(2,219)

Net increase (decrease) in cash and cash equivalents and restricted cash

 

(54,661)

43,742

Cash and cash equivalents and restricted cash, beginning of period

475,280

 

442,038

Cash and cash equivalents and restricted cash, end of period

$

420,619

$

485,780

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents, beginning of period

472,246

 

435,990

Restricted cash, beginning of period

3,034

 

6,048

Cash and cash equivalents and restricted cash, beginning of period

$

475,280

$

442,038

Cash and cash equivalents, end of period

417,544

 

480,522

Restricted cash, end of period

3,075

 

5,258

Cash and cash equivalents and restricted cash, end of period

$

420,619

$

485,780

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NABORS INDUSTRIES LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

Mandatory Convertible

Capital

Accumulated

Preferred Shares

Common Shares

in Excess

Other

Non-

    

    

Par

    

    

Par

    

of Par

    

Comprehensive

    

Retained

    

Treasury

    

controlling

    

Total

(In thousands, except per share amounts)

Shares

Value

Shares

Value

Value

Income

Earnings

Shares

Interest

Equity

As of December 31, 2019

 

5,613

$

6

416,198

$

416

$

3,412,972

$

(11,788)

$

(104,775)

$

(1,314,020)

$

67,354

$

2,050,165

Net income (loss)

(391,827)

17,465

(374,362)

Dividends to common shareholders ($0.50 per share)

(3,514)

(3,514)

Dividends to preferred shareholders ($0.75 per share)

(3,652)

(3,652)

Other comprehensive income (loss), net of tax

 

(17,218)

(17,218)

Repurchase of common and preferred shares

(724)

(1)

(12,126)

(1,731)

(13,858)

Share-based compensation

9,158

9,158

Accrued distribution on redeemable noncontrolling interest in subsidiary

(4,432)

(4,432)

Other

 

3,268

3

(1,550)

358

(1,189)

As of March 31, 2020

 

4,889

$

5

419,466

$

419

$

3,408,454

$

(29,006)

$

(508,200)

$

(1,315,751)

$

85,177

$

1,641,098

As of December 31, 2020

 

4,870

$

5

8,383

$

419

$

3,423,935

$

(11,124)

$

(946,100)

$

(1,315,751)

$

105,424

$

1,256,808

Net income (loss)

(137,086)

8,776

(128,310)

PSU distribution equivalent rights

(10)

(10)

Dividends to preferred shareholders ($0.75 per share)

(3,653)

(3,653)

Other comprehensive income (loss), net of tax

368

368

Share-based compensation

6,775

6,775

Accrued distribution on redeemable noncontrolling interest in subsidiary

(2,402)

(2,402)

Other

120

(2)

(1,621)

1

(1,622)

As of March 31, 2021

4,870

$

5

8,503

$

417

$

3,429,089

$

(10,756)

$

(1,089,251)

$

(1,315,751)

$

114,201

$

1,127,954

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Nabors Industries Ltd. and Subsidiaries

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 General

Unless the context requires otherwise, references in this report to “we,” “us,” “our,” “the Company,” or “Nabors” mean Nabors Industries Ltd., together with our subsidiaries where the context requires. References in this report to “Nabors Delaware” mean Nabors Industries, Inc., a wholly owned subsidiary of Nabors.

Our business is comprised of our global land-based and offshore drilling rig operations and other rig related services and technologies. These services and technologies include tubular running services, wellbore placement solutions, directional drilling, measurement-while-drilling (“MWD”), logging-while-drilling (“LWD”) systems and services, equipment manufacturing, rig instrumentation and drilling optimization software.

With operations in approximately 20 countries, we are a global provider of drilling and drilling-related services for land-based and offshore oil and natural gas wells, with a fleet of rigs and drilling-related equipment which, as of March 31, 2021 included:

354 actively marketed rigs for land-based drilling operations in the United States, Canada and approximately 14 other countries throughout the world; and

29 actively marketed rigs for offshore drilling operations in the United States and multiple international markets.

The outbreak of the novel coronavirus (“COVID-19”), together with actions by large oil and natural gas producing countries, led to decreases in commodity prices, specifically oil and natural gas prices, resulting from oversupply and demand weakness. These price decreases caused significant disruptions and volatility in the global marketplace beginning in 2020. Lower prices and the resulting weakness in demand for our services negatively affected our results of operations and cash flows, and uncertainty remains regarding the length and impact of COVID-19 on the energy industry and the outlook for our business.

Note 2 Summary of Significant Accounting Policies

Interim Financial Information

The accompanying unaudited condensed consolidated financial statements of Nabors have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. Therefore, these financial statements should be read together with our annual report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”). In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to state fairly our financial position as of March 31, 2021 and the results of operations, comprehensive income (loss), cash flows and changes in equity for the periods presented herein. Interim results for the three months ended March 31, 2021 may not be indicative of results that will be realized for the full year ending December 31, 2021.

Principles of Consolidation

Our condensed consolidated financial statements include the accounts of Nabors, as well as all majority owned and non-majority owned subsidiaries consolidated in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation.

In addition to the consolidation of our majority owned subsidiaries, we also consolidate variable interest entities (“VIE”) 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

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potentially be significant to 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 SANAD’s economic performance, including operations, maintenance and certain sourcing and procurement, we have determined Nabors to be the primary beneficiary. See Note 3—Joint Ventures.

Inventory

Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out or weighted-average cost methods and includes the cost of materials, labor and manufacturing overhead. Inventory included the following:

March 31,

December 31,

    

2021

    

2020

 

(In thousands)

 

Raw materials

$

123,594

$

133,424

Work-in-progress

 

5,672

 

3,452

Finished goods

 

25,006

 

23,709

$

154,272

$

160,585

Recently Adopted Accounting Pronouncements

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 has been applied using the modified retrospective method with a cumulative effect adjustment to beginning retained earnings. Trade receivables (including the allowance for credit losses) are the only financial instrument in scope for ASU 2016-13 currently held by the Company. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for intraperiod allocations and interim tax calculations and adds guidance to simplify accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.

Note 3 Joint Ventures

During 2016, we entered into an agreement with Saudi Aramco to form a joint venture known as SANAD to own, manage and operate onshore drilling rigs in the Kingdom of Saudi Arabia. SANAD is equally owned by Saudi Aramco and Nabors.

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 $394 million to the joint venture. The contributions were received in exchange for redeemable ownership interests which accrue interest annually, have a twenty-five year maturity and are required to be converted to authorized capital should certain events occur, including the accumulation of specified losses. In the accompanying condensed consolidated balance sheet, Nabors has reported Saudi Aramco’s share of authorized capital as a component of noncontrolling interest in equity and Saudi Aramco’s share of the redeemable ownership interests as redeemable noncontrolling interest in subsidiary, classified as mezzanine equity. The accrued interest on the redeemable ownership interest is a non-cash financing activity and is reported as an increase in the redeemable noncontrolling interest in subsidiary line in our condensed consolidated balance sheet. In January 2021, SANAD settled approximately $100 million of the accrued interest from inception to December 31, 2020, by making a cash payment to each partner for their respective amounts. The assets and liabilities included in the condensed balance sheet below are (1) assets that can either be used to settle obligations of the VIE or be made available in the future to the equity owners through dividends, distributions or in exchange of the redeemable ownership interests (upon mutual agreement of the owners) or (2) liabilities for which creditors do not have recourse to other assets of Nabors.

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The condensed balance sheet of SANAD, as included in our condensed consolidated balance sheet, is presented below.

March 31,

December 31,

    

2021

    

2020

 

(In thousands)

 

Assets:

Cash and cash equivalents

$

297,930

$

368,981

Accounts receivable

 

74,140

 

79,711

Other current assets

 

13,854

 

17,148

Property, plant and equipment, net

 

421,951

 

428,331

Other long-term assets

 

20,654

 

2,590

Total assets

$

828,529

$

896,761

Liabilities:

Accounts payable

$

59,239

$

61,808

Accrued liabilities

 

25,745

 

18,791

Total liabilities

$

84,984

$

80,599

Note 4 Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs.

Under the fair value hierarchy:

Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market;

Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and

Level 3 measurements include those that are unobservable and of a subjective nature.

Our financial assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 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. There were no transfers of our financial assets between Level 1 and Level 2 measures during the three months ended March 31, 2021. 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 March 31, 2021 and December 31, 2020, our short-term investments were carried at fair market value and totaled $17 thousand and $9.5 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.

Nonrecurring Fair Value Measurements

We applied fair value measurements to our nonfinancial assets and liabilities measured on a nonrecurring basis, which consist of measurements primarily related 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.

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Fair Value of Financial Instruments

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. The fair value of our debt instruments is determined using Level 2 measurements. The carrying and fair values of these liabilities were as follows:

March 31, 2021

December 31, 2020

Carrying

Fair

Carrying

Fair  

Value

Value

Value

Value

(In thousands)

4.625% senior notes due September 2021

 

$

86,389

$

85,470

 

$

86,329

$

78,862

5.50% senior notes due January 2023

 

 

25,425

 

23,830

 

 

28,443

 

18,768

5.10% senior notes due September 2023

 

 

120,109

 

108,324

 

 

121,077

 

78,435

0.75% senior exchangeable notes due January 2024

 

 

250,776

 

214,969

 

 

279,700

 

169,458

5.75% senior notes due February 2025

 

586,308

 

436,067

 

 

610,818

 

318,871

6.50% senior priority guaranteed notes due February 2025

 

50,485

 

47,772

 

 

50,485

 

44,059

9.00% senior priority guaranteed notes due February 2025

218,082

223,695

192,032

 

185,221

7.25% senior guaranteed notes due January 2026

 

559,978

 

467,318

 

 

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