SEGMENT REPORTING

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 14—SEGMENT REPORTING

We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. Each of the operating segments is separately managed by a senior executive who is a member of our Executive Committee (“EXCOM”).  EXCOM is led by our Chief Executive Officer, who is the chief operating decision maker. Discrete financial information is available for each of the segments, and the EXCOM uses the operating results of each of the operating segments for performance evaluation and resource allocation.

We manage operating segments along geographic lines consisting of AEA, MEA and ASA. 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.

We account for intersegment sales at prices that we generally establish by reference to similar transactions with unaffiliated customers. Reporting segments are measured based on operating income, which is defined as revenues reduced by total costs and expenses and equity in loss of unconsolidated affiliates.

Summarized financial information is shown in the following tables:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(in thousands)
Revenues(1):
AEA	$	86,810		$	104,701		$	149,435		$	248,014
MEA		317,834			420,221			588,089			574,021
ASA		301,983			521,615			698,135			774,965
Total revenues	$	706,627		$	1,046,537		$	1,435,659		$	1,597,000
Operating income (loss)(2):
AEA	$	3,168		$	6,176		$	(21,753	)	$	22,433
MEA		41,959			30,823			80,426			36,065
ASA		12,274			17,157			37,407			9,731
Corporate		(413	)		(5,043	)		(3,099	)		(5,810	)
Total operating income	$	56,988		$	49,113		$	92,981		$	62,419
Capital expenditures(3):
AEA	$	941		$	516		$	3,526		$	3,429
MEA		2,469			4,828			4,703			14,942
ASA		134,567			18,669			161,575			29,493
Corporate and Other		797			-			870			121
Total capital expenditures	$	138,774		$	24,013		$	170,674		$	47,985
Depreciation and amortization:
AEA	$	7,172		$	10,464		$	14,315		$	23,287
MEA		6,033			9,019			10,844			14,757
ASA		6,060			3,862			12,449			7,778
Corporate and Other		2,130			2,699			4,389			5,549
Total depreciation and amortization	$	21,395		$	26,044		$	41,997		$	51,371
Drydock amortization:
AEA	$	2,234		$	3,161		$	5,410		$	6,244
MEA		529			550			1,064			1,163
ASA		229			675			458			2,251
Total drydock amortization	$	2,992		$	4,386		$	6,932		$	9,658

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

⁽²⁾ The AEA segment’s operating results for the six months ended June 30, 2016 include an impairment charge of $32 million related to the Agile vessel. The ASA segment’s operating results in the six months ended June 30, 2015 included a $4 million impairment charge for the DB 101 and $3 million of loss on disposal of this asset.

⁽³⁾ Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for the three months ended June 30, 2016 included $1 million of cash payments for liabilities outstanding as of March 31, 2016 and for the six months ended June 30, 2016 excluded $2 million in accrued liabilities outstanding at the end of the period. Capital expenditures for the three and six months ended June 30, 2015 included $8 million and $11 million, respectively, of cash payments for accrued capital expenditures outstanding at the end of the respective periods.

	June 30, 2016		December 31, 2015
	(In thousands)
Segment assets:
AEA	$	751,607	$	896,822
MEA		942,281		971,170
ASA		915,546		774,365
Corporate and Other		564,494		744,719
	$	3,173,928	$	3,387,076