SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

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 March 31,
	2013			2012
	(Unaudited) (In thousands)
Revenues(1):
Asia Pacific	$	326,062		$	297,035
Atlantic		148,184			99,604
Middle East		333,242			331,039
Total revenues	$	807,488		$	727,678
Operating income:
Asia Pacific	$	87,952		$	57,434
Atlantic		(16,410	)		(11,993	)
Middle East		(18,509	)		34,735
Total operating income	$	53,033		$	80,176
Capital expenditures(2):
Asia Pacific	$	3,755		$	16,565
Atlantic		22,010			11,875
Middle East		10,552			15,776
Corporate and Other		1,332			535
Total capital expenditures	$	37,649		$	44,751
Depreciation and amortization:
Asia Pacific	$	5,030		$	4,857
Atlantic		6,805			7,184
Middle East		6,510			7,494
Corporate and Other		1,877			3,741
Total depreciation and amortization	$	20,222		$	23,276
Drydock amortization:
Asia Pacific	$	2,961		$	2,992
Atlantic		1,908			3,436
Middle East		681			684
Total drydock amortization	$	5,550		$	7,112

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

⁽²⁾  Total capital expenditures presents expenditures for which cash payments were made during the period. These amounts exclude approximately $34.0 million and $13.0 million in accrued capital expenditures for the three months ended March 31, 2013 and 2012, respectively.

	March 31, 2013		December 31, 2012
	(Unaudited)
	(In thousands)
Segment assets:
Asia Pacific	$	1,196,298	$	1,402,923
Atlantic		570,347		536,734
Middle East		1,208,121		1,006,284
Corporate and other		206,252		387,686
Total assets	$	3,181,018	$	3,333,627