DISPOSITIONS AND OTHER ITEMS

12 Months Ended

Dec. 31, 2012

DISPOSITIONS AND OTHER ITEMS

NOTE 2—DISPOSITIONS AND OTHER ITEMS

Assets Held for Sale

During the quarter ended September 30, 2012, we committed to a plan to sell three of our multi-function marine vessels, specifically the Bold Endurance, DB 16 and DB 26. At December 31, 2012, we classified approximately $30.0 million as assets held for sale in our consolidated balance sheet. On December 18, 2012, we entered into an agreement to sell the Bold Endurance for cash proceeds of approximately $2.0 million. The sale was completed in January 2013. We remain in active discussions with several interested parties to sell the remaining two vessels.

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.

During the quarter ended September 30, 2010, we incurred approximately $21.0 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, for the year ended December 31, 2011 we reduced our estimated closure costs by $10.0 million to reflect our revised estimate. The impact of this revision was reflected in our consolidated statements of income in costs of operations for the year ended December 31, 2011 for the Middle East segment.

Discontinued Operations

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

Charter Fleet Business

On March 19, 2012, we completed the sale of our former charter fleet business, which operated 10 of the 14 vessels acquired in our 2007 Secunda Acquisition. For the year ended December 31, 2011, we recognized an approximate $22.0 million write-down of our former charter fleet business. 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 former charter fleet business:

	Year Ended December 31,
	2012		2011			2010
	(In thousands)
Revenues	$	8,184	$	44,849		$	57,528
Loss on disposal of discontinued operations, before taxes		257		(21,934	)		(27,690	)
Income before provision for income taxes		3,240		10,030			8,081
		3,497		(11,904	)		(19,609	)
Provision for income taxes		—		(2,908	)		(2,711	)
Income (loss) from discontinued operations, net of tax	$	3,497	$	(14,812	)	$	(22,320	)

The following table presents the carrying values of the major classes of assets and liabilities attributable to our former charter fleet business that are included in our consolidated balance sheet:

	December 31, 2011
	(In thousands)
Other current assets	$	3,197
Property, plant and equipment—net		45,892
Other long-term assets		9,679
Total long-term assets held for sale	$	55,571

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.

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

	Year Ended December  31, 2010(1)
	(In thousands)
Revenues	$	1,524,424
Loss on disposal of discontinued operations, before taxes		(95,621	)
Income before provision for income taxes		105,796
		10,175
Provision for income taxes		(22,755	)
Income (loss) from discontinued operations, net of tax	$	(12,580	)

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