SEGMENT REPORTING

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 9—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,
	2013			2012			2013			2012
	(Unaudited) (In thousands)
Revenues(1):
Asia Pacific	$	229,829		$	338,464		$	555,891		$	635,499
Atlantic		186,554			110,304			334,738			209,908
Middle East		230,867			440,480			564,109			771,519
Total revenues	$	647,250		$	889,248		$	1,454,738		$	1,616,926
Operating income (loss):
Asia Pacific	$	(32,395	)	$	46,605		$	55,557		$	104,039
Atlantic		(48,651	)		(14,042	)		(65,061	)		(26,035	)
Middle East		(68,490	)		46,819			(86,999	)		81,554
Total operating income (loss)	$	(149,536	)	$	79,382		$	(96,503	)	$	159,558
Capital expenditures(2):
Asia Pacific	$	41,430		$	21,666		$	45,185		$	38,231
Atlantic		34,303			52,615			56,313			64,490
Middle East		27,391			10,935			37,943			26,711
Corporate and Other		3,702			1,694			5,034			2,229
Total capital expenditures	$	106,826		$	86,910		$	144,475		$	131,661
Depreciation and amortization:
Asia Pacific	$	4,507		$	5,235		$	9,537		$	10,092
Atlantic		5,181			6,111			11,986			13,295
Middle East		7,516			7,554			14,026			15,048
Corporate and Other		1,892			3,698			3,769			7,439
Total depreciation and amortization	$	19,096		$	22,598		$	39,318		$	45,874
Drydock amortization:
Asia Pacific	$	2,088		$	2,997		$	5,049		$	5,989
Atlantic		1,908			2,877			3,816			6,313
Middle East		385			621			1,066			1,305
Total drydock amortization	$	4,381		$	6,495		$	9,931		$	13,607

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

⁽²⁾  Total capital expenditures presents expenditures for which cash payments were made during the period. These amounts exclude approximately $10.8 million and $1.3 million in accrued capital expenditures for the six months ended June 30, 2013 and 2012, respectively.

	June 30, 2013		December 31, 2012
	(Unaudited)
	(In thousands)
Segment assets:
Asia Pacific	$	1,176,446	$	1,402,923
Atlantic		561,633		536,734
Middle East		1,262,792		1,006,284
Corporate and other		195,076		387,686
Total assets	$	3,195,947	$	3,333,627