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SEGMENT REPORTING
3 Months Ended
Mar. 31, 2018
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.

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