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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In thousands)
Revenues ⁽¹⁾:
AEA	$	61,002		$	69,699		$	130,697		$	219,134
MEA		736,291			334,731			1,602,955			922,820
ASA		161,238			154,113			532,983			852,248
Total revenues:	$	958,531		$	558,543		$	2,266,635		$	1,994,202

Income before provision for income taxes:
Operating income (loss):
AEA	$	(7,171	)	$	2,871		$	(18,290	)	$	32,831
MEA		163,626			60,365			345,483			159,701
ASA		23,682			27,381			86,351			109,082
Segment operating income		180,137			90,617			413,544			301,614
Corporate and Other⁽²⁾		(53,065	)		(47,562	)		(143,288	)		(165,578	)
Total operating income		127,072			43,055			270,256			136,036
Interest expense, net		(11,976	)		(17,431	)		(50,886	)		(41,324	)
Other non-operating income (expense), net		803			5,237			(1,074	)		(1,005	)
Income before provision for income taxes	$	115,899		$	30,861		$	218,296		$	93,707

Capital expenditures:
AEA	$	5,369		$	269		$	20,694		$	3,795
MEA		7,858			8,318			18,489			13,021
ASA		1,812			16,603			7,548			178,178
Corporate and Other⁽³⁾		1,145			1,529			50,375			2,399
Total capital expenditures:	$	16,184		$	26,719		$	97,106		$	197,393

Depreciation and amortization:
AEA	$	5,300		$	8,992		$	16,708		$	28,717
MEA		13,224			7,724			34,889			19,632
ASA		7,966			8,970			20,913			21,877
Corporate and Other		1,857			2,140			5,522			6,529
Total depreciation and amortization:	$	28,347		$	27,826		$	78,032		$	76,755

⁽¹⁾ Intersegment transactions included in revenues were not significant for all the periods presented.
⁽²⁾ Corporate and Other operating results:
              •    in 2017 include a $3 million gain on sale of assets.
              •    in 2016 include:
            o   $44 million of impairment charges, see Note 12, Fair Value Measurements, for further discussion; and
            o   $11 million of restructuring expenses, see Note 4, Restructuring, for further discussion.

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

	September 30, 2017		December 31, 2016
	(In thousands)
Segment assets⁽¹⁾:
AEA	$	695,751	$	727,328
MEA		1,632,064		907,936
ASA		671,864		976,470
Corporate and Other		461,756		610,496
Total assets	$	3,461,435	$	3,222,230

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