DISCONTINUED OPERATIONS AND OTHER ITEMS

12 Months Ended

Dec. 31, 2011

DISCONTINUED OPERATIONS AND OTHER ITEMS

NOTE 2—DISCONTINUED OPERATIONS AND OTHER ITEMS

Discontinued Operations

The following discussion provides information pertaining to our significant discontinued operations.

Charter Fleet Business

During 2010, we committed to a plan to sell our charter fleet business, which operates 10 of the 14 vessels acquired in our 2007 Secunda Acquisition. Based on information obtained through recent discussions with interested parties and external advisors, in December 2011 we recognized an approximate $22 million write-down of the carrying value of the assets to reflect their estimated net realizable value. The write-down was based on the estimated fair value of consideration expected from the sale, including estimated selling costs, and we considered that fair value measurement as Level 2.

The following table presents selected financial information regarding the results of operations attributable to our charter fleet business:

	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Revenues	$	44,849		$	57,528		$	56,655
Loss on disposal of discontinued operations, before taxes		(21,934	)		(27,690	)		—
Income before provision for income taxes		10,030			8,081			(1,533	)
		(11,904	)		(19,609	)		(1,533	)
Provision for income taxes		(2,908	)		(2,711	)		(3,534	)
Income (loss) from discontinued operations, net of tax	$	(14,812	)	$	(22,320	)	$	(5,067	)

The following table presents the carrying values of the major classes of assets and liabilities held for sale that are included in our consolidated balance sheets:

	December 31,
	2011		2010
	(In thousands)
Cash	$	—	$	1,426
Accounts receivable—net		—		5,253
Other assets		3,197		3,482
Total current assets held for sale		3,197		10,161
Property, plant and equipment—net		45,892		68,595
Other assets		9,679		8,555
Total long-term assets held for sale	$	55,571	$	77,150
Accounts payable and accrued liabilities	$	—	$	8,748
Other liabilities		—		12,154
Total liabilities associated with assets held for sale	$	—	$	20,902

Spin-off of B&W

On July 30, 2010, we completed the spin-off of B&W to our stockholders through a distribution of all of the outstanding common stock of B&W. B&W’s assets and businesses primarily consisted of those that we previously reported as our Government Operations and Power Generation Systems segments. Prior to the completion of the spin-off, B&W made a cash distribution to us totaling $100 million.

Financial Information

The following table presents selected financial information regarding the results of operations of our former B&W business:

	Year Ended December 31,
	2010(1)			2009
	(In thousands)
Revenues	$	1,524,424		$	2,854,632
Loss on disposal of discontinued operations, before taxes		(95,621	)		(7,118	)
Income before provision for income taxes		105,796			260,834
		10,175			253,716
Provision for income taxes		(22,755	)		(67,751	)
Income (loss) from discontinued operations, net of tax	$	(12,580	)	$	185,965

(1) Includes the B&W operations through July 30, 2010.

Other Items

Vessel Sale

On August 26, 2011, we completed the sale of the DB 23 marine vessel. Cash consideration received from the vessel sale was approximately $8.0 million, resulting in a pre-tax gain of $7.7 million that is included in our consolidated statements of income for the year ended December 31, 2011 for the Atlantic segment.

Fabrication Facility

During the quarter ended September 30, 2010, we incurred approximately $21 million of costs to discontinue our development plans for a new fabrication yard in Kazakhstan, including estimated lease termination costs. After obtaining additional information regarding the discontinuance of our development plans, in the quarter ended December 31, 2011 we reduced our estimated closure costs by $10 million to reflect our revised estimate. The impact of this revision is reflected in our consolidated statements of income in costs of operations for the year ended December 31, 2011 for the Middle East segment.