ACQUISITION, DISPOSITIONS AND ATLANTIC RESTRUCTURING CHARGES

6 Months Ended

Jun. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

ACQUISITION, DISPOSITIONS AND ATLANTIC RESTRUCTURING CHARGES

NOTE 2—ACQUISITION, DISPOSITIONS AND ATLANTIC RESTRUCTURING CHARGES

Acquisition

During the quarter ended March 31, 2013, we entered into a share purchase agreement to acquire all of the issued and outstanding shares of capital stock of Deepsea Group Limited, a United Kingdom-based company that provides subsea and other engineering services to international energy companies, primarily through offices in the United Kingdom and the United States. Total consideration was approximately $9.0 million, which includes cash ($6.0 million) and the delivery of 313,580 restricted shares of MII common stock (out of treasury). The transaction is being accounted for using the acquisition method and, accordingly, assets acquired and liabilities assumed are recorded at their respective fair values. The preliminary purchase price allocation has not been completed and is subject to change for a period of one-year following the acquisition. Results of operations and pro forma results have not been presented, as the effects of this transaction were not material to our condensed consolidated financial statements.

Dispositions

Assets Held for Sale

We previously committed to a plan to sell four of our multi-function marine vessels, specifically the Bold Endurance, DB 16, DB 26 and the DLB KPI. Assets classified as held for sale are no longer depreciated. During the quarter ended March 31, 2013, we completed the sale of the Bold Endurance and the DB 26 for aggregate cash proceeds of approximately $32.0 million, resulting in an aggregate gain of approximately $12.5 million. We remain in active discussions with interested parties to sell the DLB KP1 and DB 16.

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 2007 in the Secunda Acquisition. The cash proceeds from the charter fleet sale were approximately $61.0 million, resulting in a gain on the sale of approximately $0.3 million. For the year ended December 31, 2011, we recognized an approximate $22.0 million write-down of our former charter fleet business.

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

	Six Months Ended June 30, 2012
	(Unaudited) (In thousands)
Revenues	$	8,184
Gain on disposal of discontinued operations		257
Income before provision for income taxes		3,240
Income from discontinued operations, net of tax	$	3,497

Atlantic Restructuring

We have previously implemented various cost reduction measures to better align our Atlantic operations with anticipated business levels. However, due to the continued decline and recurring operating losses experienced in our Atlantic segment, we commenced a restructuring of this segment’s operations during the quarter ended June 30, 2013, which involves our Morgan City, Louisiana, Houston, Texas, New Orleans, Louisiana and Brazil locations. The restructuring involves, among other things, reductions of administrative, fabrication and engineering personnel, and a plan to discontinue utilization of the Morgan City facility (after the completion of existing backlog projects, which are currently forecasted to be completed in the second quarter of 2014). Future fabrication and marine operations in the Atlantic segment are expected to be executed using the Altamira, Mexico facility for the foreseeable future. In addition, we have decided to exit a joint venture. Costs associated with the restructuring primarily include severance and other personnel-related costs, asset impairment and relocation costs and future unutilized lease costs. These costs are expected to range between $45 million to $60 million in the aggregate, and the majority of these costs are expected to be recognized over four quarters beginning with the quarter ended June 30, 2013. Of the total anticipated costs, we incurred approximately $15.5 million during the quarter ended June 30, 2013.