SEGMENT REPORTING

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 16—SEGMENT REPORTING

We disclose the results of each of our reportable segments in accordance with ASC 280, Segment Reporting. Each of the reportable 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 reportable segments for performance evaluation and resource allocation.

We manage reportable segments along geographic lines consisting of (1) AEA, (2) MEA and (3) ASA. We also report certain corporate and other non-operating activities under the heading “Corporate and Other.”

Corporate and Other primarily reflects corporate expenses, certain centrally managed initiatives (such as restructuring charges), impairments, year-end mark-to-market (“MTM”) pension actuarial gains and losses, costs not attributable to a particular reportable segment and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities and engineering resources.

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.

Summarized financial information is shown in the following tables:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In thousands)
Revenues (1):
AEA	$	41,564		$	86,810		$	69,695		$	149,435
MEA		556,612			317,834			866,664			588,089
ASA		190,497			301,983			371,745			698,135
Total revenues:	$	788,673		$	706,627		$	1,308,104		$	1,435,659
Income before provision for income taxes:
Operating income (loss):
AEA	$	(11,302	)	$	13,861		$	(11,119	)	$	29,960
MEA		117,480			53,297			181,857			99,336
ASA		32,894			36,045			62,669			81,701
Segment operating income (loss)		139,072			103,203			233,407			210,997
Corporate and Other(2)		(51,873	)		(46,215	)		(90,223	)		(118,016	)
Total operating income		87,199			56,988			143,184			92,981
Interest expense, net		(21,204	)		(12,655	)		(38,910	)		(23,893	)
Other non-operating income (expense), net		(2,491	)		(2,851	)		(1,877	)		(6,242	)
Income before provision for income taxes	$	63,504		$	41,482		$	102,397		$	62,846
Capital expenditures:
AEA	$	10,074		$	941		$	15,325		$	3,526
MEA		4,779			2,469			10,631			4,703
ASA		2,224			134,567			5,736			161,575
Corporate and Other(3)		996			797			49,230			870
Total capital expenditures:	$	18,073		$	138,774		$	80,922		$	170,674
Depreciation and amortization:
AEA	$	7,395		$	9,406		$	11,408		$	19,725
MEA		13,762			6,562			21,665			11,908
ASA		5,372			6,289			12,947			12,907
Corporate and Other		1,775			2,130			3,665			4,389
Total depreciation and amortization:	$	28,304		$	24,387		$	49,685		$	48,929

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

⁽²⁾ Corporate and Other operating results for the first half of 2017 and 2016 include a $3 million gain on sale of assets and $32 million impairment charge related to our Agile vessel, respectively.

⁽³⁾ Corporate and Other capital expenditures in the first half of 2017 include the purchase of the Amazon, a pipelay and construction vessel. Following the purchase we sold this vessel to an unrelated third partyand simultaneously entered into an 11-year bareboat charter agreement, see Note 8, Sale Leaseback.

	June 30, 2017		December 31, 2016
	(In thousands)
Segment assets(1):
AEA	$	626,524	$	727,328
MEA		1,530,971		907,936
ASA		750,650		976,470
Corporate and Other		383,303		610,496
Total assets	$	3,291,448	$	3,222,230

⁽¹⁾ Our marine vessels are included in the area in which they were located as of reporting date.