In total, they made 3,401 adjustments with a dollar value of $1.3 trillion. This write-down was a non-cash, non-recurring charge that accounted for over 10% of NBR’s reported net loss in 2016. NBR still generated an operating loss last year, as did a large number of companies in the oil and gas industry. However, removing the impact of this hidden write-down reveals that the company is significantly closer to profitability than its GAAP net income would suggest. It also ensures that NBR’s management will still be held accountable for the capital they invested in CJES in the years to come.

Source: Forbes March 03, 2017 21:02 UTC