SEGMENT REPORTING

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(Unaudited) (In thousands)
Revenues(1):
Asia Pacific	$	190,231		$	468,200		$	746,122		$	1,103,699
Atlantic		116,871			125,317			451,609			335,225
Middle East		379,754			435,228			943,863			1,206,747
Total revenues	$	686,856		$	1,028,745		$	2,141,594		$	2,645,671
Operating income (loss):
Asia Pacific	$	(37,663	)	$	52,192		$	17,894		$	156,231
Atlantic		(32,390	)		(10,714	)		(97,451	)		(36,749	)
Middle East		17,399			41,003			(69,600	)		122,557
Total operating income (loss)	$	(52,654	)	$	82,481		$	(149,157	)	$	242,039
Capital expenditures(2):
Asia Pacific	$	42,568		$	14,908		$	87,753		$	53,139
Atlantic		4,023			16,454			60,336			80,944
Middle East		25,516			15,286			63,459			41,997
Corporate and Other		8,815			975			13,849			3,204
Total capital expenditures	$	80,922		$	47,623		$	225,397		$	179,284
Depreciation and amortization:
Asia Pacific	$	4,667		$	5,375		$	14,204		$	15,467
Atlantic		5,999			3,554			17,985			16,849
Middle East		8,293			6,929			22,319			21,977
Corporate and Other		1,837			4,224			5,606			11,663
Total depreciation and amortization	$	20,796		$	20,082		$	60,114		$	65,956
Drydock amortization:
Asia Pacific	$	1,927		$	2,241		$	6,976		$	8,230
Atlantic		1,801			4,971			5,617			11,284
Middle East		520			787			1,586			2,092
Total drydock amortization	$	4,248		$	7,999		$	14,179		$	21,606

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

(2) Total capital expenditures represent expenditures for which cash payments were made during the period. These amounts exclude approximately $38.1 million and $1.2 million in accrued capital expenditures for the nine months ended September 30, 2013 and 2012, respectively.

	September 30, 2013		December 31, 2012
	(Unaudited)
	(In thousands)
Segment assets:
Asia Pacific	$	1,171,837	$	1,402,923
Atlantic		611,111		536,734
Middle East		1,228,812		1,006,284
Corporate and other		145,521		387,686
Total assets	$	3,157,281	$	3,333,627