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.

Summarized financial information is shown in the following tables:

	Three Months Ended March 31,
	2018			2017
	(in thousands)
Revenues:
AEA	$	113,304		$	28,131
MEA		345,123			310,052
ASA		149,391			181,248
Total revenues:	$	607,818		$	519,431

Income before provision for income taxes:
Operating income:
AEA	$	53		$	183
MEA		69,183			64,377
ASA		75,349			29,775
Segment operating income		144,585			94,335
Corporate and Other⁽¹⁾		(76,146	)		(38,296	)
Total operating income		68,439			56,039
Interest expense, net		(11,608	)		(17,706	)
Other non-operating income, net		1,719			560
Income before provision for income taxes	$	58,550		$	38,893

Capital expenditures:⁽²⁾
AEA	$	2,524		$	5,251
MEA		3,295			5,852
ASA		3,039			3,512
Corporate and Other⁽³⁾		9,528			48,234
Total capital expenditures:	$	18,386		$	62,849

Depreciation and amortization:⁽⁴⁾
AEA	$	7,302		$	4,013
MEA		6,248			7,903
ASA		7,426			7,575
Corporate and Other		1,800			1,890
Total depreciation and amortization:	$	22,776		$	21,381

⁽¹⁾Corporate and Other operating results for the first quarter of 2018 and 2017 include approximately $14 million in restructuring costs and transaction costs related to the Combination and a $3 million gain on sale of assets, respectively.

⁽²⁾ Liabilities associated with assets acquired during the first quarter of 2018 and 2017 were $10 million and $9 million, respectively.

⁽³⁾ Corporate and other capital expenditures in the first quarter of 2017 include the purchase of the Amazon, a pipelay and construction vessel. Following the purchase, we sold this vessel to an unrelated party and simultaneously entered into an 11-year bareboat charter agreement.

⁽⁴⁾Depreciation and amortization expense associated with our marine vessels is included in the respective segments in which the vessels were located as of the reporting date.

	March 31, 2018		December 31, 2017
	(in thousands)
Segment assets:
AEA	$	960,102	$	921,171
MEA		955,054		1,020,599
ASA		923,226		887,209
Corporate and Other		362,266		393,841
Total assets	$	3,200,648	$	3,222,820

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

Our revenue by service lines and contract types was as follows:

	Three Months Ended March 31,
	2018		2017
	(in thousands)
Service line revenues:
Offshore	$	394,724	$	354,064
Subsea and other		213,094		165,367
	$	607,818	$	519,431

Contract types
Fixed-price	$	582,592	$	475,921
Unit-basis and other		25,226		43,510
	$	607,818	$	519,431