SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

SEGMENT REPORTING

NOTE 8 – SEGMENT REPORTING

We report our financial results under a geographic-based reporting structure, which coincides with how our financial information is reviewed and evaluated on a regular basis by our chief operating decision maker. We operate in four primary operating segments, which consist of Asia Pacific, Atlantic, Caspian and the Middle East. The Caspian and Middle East operating segments are aggregated into the Middle East reporting segment due to the proximity of regions and similarities in the nature of services provided, economic characteristics and oversight responsibilities. Accordingly, we have three reporting segments consisting of Asia Pacific, Atlantic and the Middle East. We also report certain corporate and other non-operating activities under the heading “Corporate and Other.”

Reporting segments are measured based on operating income, which is defined as revenues reduced by total costs and expenses and equity in income (loss) of unconsolidated affiliates. Summarized financial information is shown in the following tables:

	Three Months Ended June  30,						Six Months Ended June  30,
	2012			2011			2012			2011
	(Unaudited) (In thousands)
Revenues(1):
Asia Pacific	$	338,464		$	547,833		$	635,499		$	1,022,646
Atlantic		110,304			52,552			209,908			92,446
Middle East		440,480			249,416			771,519			633,949
Total revenues	$	889,248		$	849,801		$	1,616,926		$	1,749,041
Operating income (loss):
Asia Pacific	$	46,605		$	58,511		$	104,039		$	97,390
Atlantic		(14,042	)		(16,607	)		(26,035	)		(34,244	)
Middle East		46,819			41,875			81,554			120,931
Total operating income	$	79,382		$	83,779		$	159,558		$	184,077
Capital expenditures(2):
Asia Pacific	$	21,666		$	11,431		$	38,231		$	38,417
Atlantic		52,615			54,148			64,490			82,900
Middle East		10,935			5,781			26,711			13,492
Corporate and Other		1,694			6,336			2,229			6,873
Total capital expenditures	$	86,910		$	77,696		$	131,661		$	141,682
Depreciation and amortization:
Asia Pacific	$	5,235		$	6,616		$	10,092		$	12,352
Atlantic		6,111			3,448			13,295			7,241
Middle East		7,554			6,566			15,048			13,929
Corporate and Other		3,698			2,944			7,439			6,577
Total depreciation and amortization	$	22,598		$	19,574		$	45,874		$	40,099

⁽¹⁾  Intersegment transactions included in revenues were not significant for the periods presented.

⁽²⁾ Total capital expenditures exclude approximately $1.3 million and $6.9 million in accrued capital expenditures for the six months ended June 30, 2012 and 2011, respectively.

	June 30, 2012		December 31, 2011
	(Unaudited)
	(In thousands)
Segment assets:
Asia Pacific	$	1,187,914	$	934,134
Atlantic		345,218		419,258
Middle East		1,222,580		1,065,478
Corporate and Other		435,330		515,176
Total continuing operations		3,191,042		2,934,046
Total discontinued operations		—		58,768
Total assets	$	3,191,042	$	2,992,814