SEGMENT REPORTING

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 13—SEGMENT REPORTING

In the first quarter of 2015, we completed changes to our organizational structure which resulted in the realignment of our reporting segments. Our North Sea and Africa operations were previously aggregated into the Middle East reporting segment. However, the responsibility for business decisions relating to the North Sea and Africa was moved to our Americas reporting segment in the first quarter of 2015.  As a result, the North Sea and Africa businesses are now reflected in our Americas segment, now referred to as Americas, Europe and Africa, or “AEA”. All comparable periods presented have been revised to reflect this change. Accordingly, we report financial results under three reporting segments consisting of the AEA, Middle East (or “MEA”) and Asia (or “ASA”) segments. We also report certain corporate and other non-operating activities under the heading “Corporate and other,” which primarily reflects corporate personnel and activities, incentive compensation programs and other costs that are generally fully allocated to our reporting segments. However, Corporate restructuring costs associated with our corporate reorganization are not allocated to our reporting segments.

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,
	2015			2014			2015			2014
	(In thousands)						(In thousands)
Revenues(1):
AEA	$	104,701		$	125,865		$	248,014		$	307,551
MEA		420,221			236,236			574,021			496,536
ASA		521,615			113,982			774,965			275,807
Total revenues	$	1,046,537		$	476,083		$	1,597,000		$	1,079,894
Operating income (loss)(2):
AEA	$	4,588		$	6,410		$	19,659		$	(30,002	)
MEA		30,794			19,667			35,971			16,933
ASA		11,303			5,779			(1,613	)		9,210
Corporate		(5,053	)		(331	)		(5,820	)		(2,825	)
Total operating income (loss)	$	41,632		$	31,525		$	48,197		$	(6,684	)
Capital expenditures(3):
AEA	$	516		$	32,944		$	3,429		$	40,353
MEA		4,828			6,810			14,942			29,385
ASA		18,669			74,229			29,493			78,297
Corporate and Other		-			3,081			121			6,922
Total capital expenditures	$	24,013		$	117,064		$	47,985		$	154,957
Depreciation and amortization:
AEA	$	10,464		$	4,560		$	23,287		$	15,387
MEA		9,019			9,328			14,757			17,497
ASA		3,862			6,079			7,778			9,987
Corporate and Other		2,699			1,678			5,549			3,376
Total depreciation and amortization	$	26,044		$	21,645		$	51,371		$	46,247
Drydock amortization:
AEA	$	3,161		$	983		$	6,244		$	5,545
MEA		550			468			1,163			897
ASA		675			1,569			2,251			3,524
Total drydock amortization	$	4,386		$	3,020		$	9,658		$	9,966

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

⁽²⁾ Operating results for the ASA segment included a $4.2 million impairment charge for the DB101 and $3.3 million of loss on disposal of this assetin the first and second quarters of 2015, respectively.

⁽³⁾ Total capital expenditures include expenditures for which cash payments were made during the period. Capital expenditures for the three and six months ended June 30, 2015 included $7.7 million and $11 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2014. Capital expenditures for the three and six months ended June 30, 2014 included $19.9 million and $28.2 million, respectively, of cash payments for accrued capital expenditures outstanding as of December 31, 2013.

	June 30, 2015			December  31,  2014
	(In thousands)
Segment assets:
AEA	$	904,004	$	976,179
MEA		949,155		990,671
ASA		853,246		601,394
Corporate and Other		778,134		848,635
	$	3,484,539	$	3,416,879