SEGMENT REPORTING

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 9—SEGMENT REPORTING

In March 2014, we changed our organizational structure to orient around our offshore and subsea business activities through four primary geographic regions. The four geographic regions, which we consider to be our operating segments, consist of Asia Pacific, Americas, Middle East, and North Sea and Africa. The Caspian is no longer considered an operating segment and will continue to be aggregated in the Middle East reporting segment. The North Sea and Africa operating segment is also 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 continue to report financial results under reporting segments consisting of Asia Pacific, Americas and the Middle East. We also report certain corporate and other non-operating activities under the heading “Corporate and other.” “Corporate and other” primarily reflects corporate personnel and activities, incentive compensation programs and other costs, which are generally fully allocated to our operating segments. The only corporate costs currently not being allocated to our operating segments are the restructuring costs associated with our corporate reorganization.

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,
	2014			2013			2014			2013
	(In thousands)
Revenues(1):
Asia Pacific	$	205,427		$	190,231		$	481,234		$	746,122
Middle East		92,168			379,754			588,822			943,863
Americas		117,000			116,871			424,433			451,609
Total revenues	$	414,595		$	686,856		$	1,494,489		$	2,141,594
Operating income (loss)(2):
Asia Pacific	$	19,626		$	(37,663	)	$	26,151		$	17,894
Middle East		(23,606	)		17,399			(20,170	)		(69,600	)
Americas		(8,265	)		(32,390	)		(28,951	)		(97,451	)
Corporate		(1,898	)		-			(4,723	)		-
Total operating income (loss)	$	(14,143	)	$	(52,654	)	$	(27,693	)	$	(149,157	)
Capital expenditures(3):
Asia Pacific	$	5,316		$	42,568		$	83,613		$	87,753
Middle East		47,408			25,516			78,107			63,459
Americas		6,967			4,023			46,504			60,336
Corporate and Other		1,878			8,815			8,302			13,849
Total capital expenditures	$	61,569		$	80,922		$	216,526		$	225,397
Depreciation and amortization:
Asia Pacific	$	5,061		$	4,667		$	15,048		$	14,204
Middle East		7,263			8,293			24,815			22,319
Americas		7,869			5,999			23,201			17,985
Corporate and Other		2,215			1,837			5,591			5,606
Total depreciation and amortization:	$	22,408		$	20,796		$	68,655		$	60,114
Drydock amortization
Asia Pacific	$	1,938		$	1,927		$	5,462		$	6,976
Middle East		501			520			1,398			1,586
Americas		3,162			1,801			8,707			5,617
Total drydock amortization	$	5,601		$	4,248		$	15,567		$	14,179

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

(2) Operating income (loss) includes gain on sale of assets and improvement on cancellation cost estimate as discussed in Note 2—Acquisition and Dispositions—Non-Core Asset Sales.

(3) Total capital expenditures reflects expenditures for which cash payments were made during the period. Capital expenditures for the nine months ended September 30, 2014 include $18.6 million of cash payments for accrued capital expenditures outstanding as of December 31, 2013. Capital expenditures for the nine months ended September 30, 2013 exclude approximately $38.1 million in accrued liabilities related to capital expenditures.

	September 30, 2014		December 31, 2013
	(in thousands)
Segment assets:
Asia Pacific	$	777,686	$	1,030,823
Middle East		1,066,934		1,129,529
Americas		778,713		522,713
Corporate and Other		903,983		124,306
Total assets	$	3,527,316	$	2,807,371