SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 19—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 (1) Americas, Europe and Africa (“AEA”), (2) the Middle East (“MEA”) and (3) Asia (“ASA”). We also report certain corporate and other non-operating activities under the heading “Corporate and other.” Corporate and other primarily reflects costs that are not allocated to our operating segments. The only 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.

1.Information about Operations:  

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
Revenues (1):
AEA	$	285,988		$	478,800		$	567,608
MEA		1,241,591			1,134,555			795,666
ASA		1,108,404			1,456,920			937,615
Total revenues:	$	2,635,983		$	3,070,275		$	2,300,889
Operating income (loss) (2):
AEA	$	(29,829	)	$	(13,487	)	$	(54,175	)
MEA		166,774			108,321			14,087
ASA		8,569			30,597			65,416
Corporate and other		(3,261	)		(12,749	)		(8,926	)
Total operating income	$	142,253		$	112,682		$	16,402
Capital expenditures (3):
AEA	$	16,667		$	13,715		$	53,431
MEA		18,564			28,328			99,974
ASA		190,260			60,220			154,735
Corporate and other		2,588			588			13,047
Total capital expenditures:	$	228,079		$	102,851		$	321,187
Depreciation and amortization:
AEA	$	26,924		$	43,006		$	34,494
MEA		24,268			30,567			31,876
ASA		30,314			16,880			19,020
Corporate and other		8,376			9,881			7,795
Total depreciation and amortization:	$	89,882		$	100,334		$	93,185
Drydock amortization
AEA	$	9,905		$	12,554		$	11,453
MEA		1,975			2,089			2,011
ASA		915			3,304			6,255
Total drydock amortization	$	12,795		$	17,947		$	19,719

⁽¹⁾ Intercompany transactions were not significant during 2016, 2015 and 2014.

⁽²⁾ The 2016 operating results include $43 million and $12 million of impairment charges in our AEA and ASA segments, respectively. The 2015 ASA segment’s operating results included a $4 million impairment charge for the DB 101 and $3 million of loss on disposal of that vessel. The 2014 operating results include $11 million of improvements to the cancellation cost estimate included in the $38 million vessel impairment charge recognized in 2013. See Note 13, Fair Value Measurements.

⁽³⁾ Total capital expenditures represent expenditures for which cash payments were made during the period. Capital expenditures for 2016, 2015 and 2014 include $4 million, $14 million and $27 million of cash payments for accrued capital expenditures outstanding as of December 31, 2015, 2014 and 2013, respectively.

2. Information about our most significant Customers

Our significant customers by segments during 2016, 2015 and 2014, were as follows:

	% of
	Consolidated		Reportable
	Revenues		Segment
Year Ended December 31, 2016:
Inpex Operations Australia Pty Ltd		33%	ASA
Saudi Aramco		26%	MEA
RasGas Company Limited		12%	MEA
Year Ended December 31, 2015:
Inpex Operations Australia Pty Ltd		36%	ASA
Saudi Aramco		28%	MEA
Year Ended December 31, 2014:
Saudi Aramco		27%	MEA
Inpex Operations Australia Pty Ltd		25%	ASA

3. Information about our Service Lines and Operations in Different Geographic Areas:

	Year Ended December 31,
	2016		2015		2014
	(In thousands)
Service line revenues:
Installation Operations	$	1,074,069	$	1,256,412	$	1,041,525
Procurement Activities		879,222		1,123,329		677,734
Project Services and Engineering Operations		356,781		416,906		314,776
Fabrication Operations		325,911		273,628		266,854
	$	2,635,983	$	3,070,275	$	2,300,889
Geographic revenues:
Australia	$	881,812	$	1,157,723	$	614,164
Saudi Arabia		767,119		900,483		616,659
Qatar		419,963		46,873		-
Mexico		112,484		247,859		130,642
Russia		108,392		-		-
United States		95,996		32,858		148,606
Trinidad		67,757		-		-
India		56,027		-		-
United Arab Emirates		54,392		185,606		57,249
Malaysia		22,637		-		98,004
Indonesia		21,726		54,288		150,205
Brunei		-		237,337		-
Brazil		6,449		183,656		290,561
Azerbaijan		-		-		111,382
Other countries		21,229		23,592		83,417
	$	2,635,983	$	3,070,275	$	2,300,889

4. Information about our Segment Assets and Property, Plant and Equipment by Country:

	Year Ended December 31,
	2016		2015
	(In thousands)
Segment assets:
AEA	$	727,328	$	896,822
MEA		907,936		971,170
ASA		976,470		774,365
Corporate and other		610,496		744,719
Total assets	$	3,222,230	$	3,387,076
Property, plant and equipment, net(1):
Australia	$	626,605	$	-
Mexico		603,185		96,090
United Arab Emirates		318,822		341,502
United States		27,482		561,990
Saudi Arabia		22,608		4,522
Indonesia		73,213		521,922
India		10,666		307
Malaysia		2,457		49,609
Brazil		170		31,765
Other countries		2,093		3,152
Total property, plant and equipment, net	$	1,687,301	$	1,610,859

⁽¹⁾ Our marine vessels are included in the country in which they were located as of year-end.

5. Information about our Unconsolidated Affiliates:

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
Equity in loss of unconsolidated affiliates:
AEA	$	(5,082	)	$	(6,255	)	$	4,829
MEA		-			(94	)		(2,668	)
ASA		1,167			(15,137	)		(10,009	)
Corporate and other		(175	)		-			-
Total equity in loss of unconsolidated affiliates:	$	(4,090	)	$	(21,486	)	$	(7,848	)
Investments in unconsolidated affiliates:
AEA	$	2,449		$	1,540
ASA		14,064			24,327
Corporate and other		510			684
Total Investments in unconsolidated affiliates	$	17,023		$	26,551

Our consolidated balance sheets include accounts receivable attributable to our unconsolidated affiliates of approximately $17 million and $13 million as of December 31, 2016 and 2015, respectively.