SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2017

Information about Operations in Different Segments

1. Information about Operations:

	Year Ended December 31,
	2017			2016			2015
	(in thousands)
Revenues ⁽¹⁾:
NCSA	$	246,317		$	282,686		$	471,816
EARC		19,148			111,694			15,548
MENA		2,119,399			1,241,591			1,133,440
APAC		599,904			1,000,012			1,449,471
Total revenues:	$	2,984,768		$	2,635,983		$	3,070,275

Income before provision for income taxes:
Operating income (loss):
NCSA	$	(3,713	)	$	62,525		$	68,925
EARC		(13,240	)		(13,002	)		(19,099	)
MENA		450,928			209,365			144,690
APAC		93,151			99,898			116,996
Segment operating income		527,126			358,786			311,512
Corporate and Other⁽²⁾		(219,839	)	$	(220,667	)	$	(191,006	)
Total operating income		307,287			138,119			120,506
Interest expense, net		(62,974	)		(58,871	)		(50,058	)
Other non-operating income (expense), net		3,865			3,361			(17,830	)
Income before provision for income taxes	$	248,178		$	82,609		$	52,618

Capital expenditures:⁽³⁾
NCSA	$	23,014		$	16,667		$	13,715
MENA		30,470			18,564			28,328
APAC		8,830			190,260			60,220
Corporate and Other⁽⁴⁾		56,497			2,588			588
Total capital expenditures:	$	118,811		$	228,079		$	102,851

Depreciation and amortization:⁽⁵⁾
NCSA	$	25,931		$	36,382		$	55,000
MENA		31,541			26,243			32,656
APAC		35,556			31,229			20,184
Corporate and Other		7,674			8,823			10,441
Total depreciation and amortization:	$	100,702		$	102,677		$	118,281

⁽¹⁾	Intercompany transactions were not significant during 2017, 2016 and 2015.

⁽²⁾	Corporate and Other operating results:

in 2017 include:

$4 million gain on sale of assets; and

$9 million in transaction costs associated with our combination with CB&I, see Note 2, Business Combination Agreement with Chicago Bridge & Iron Company N.V. (“CB&I”).

in 2016 include:

$55 million of impairment charges, see Note 15, Fair Value Measurements, for further discussion; and

$11 million of restructuring expenses, see Note 5, Restructuring, for further discussion.

in 2015 include:

$4 million impairment charge for the DB 101 and $3 million of loss on disposal of that vessel; and

$41 million of restructuring expenses, see Note 5, Restructuring, for further discussion.

⁽³⁾	Liabilities associated with assets acquired during 2017, 2016 and 2015 was approximately $8 million as of both December 31, 2017 and 2016 and approximately $11 million as of December 31, 2015.

⁽⁴⁾	Corporate and Other capital expenditures in 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 10, Sale Leaseback.

⁽⁵⁾	Depreciation and amortization expense associated with our marine vessels is included in the respective segments in which the vessels were located as of reporting date.

Significant Impact of Customers on Company Segments

2. Information about our most significant Customers

Our significant customers by segments during 2017, 2016 and 2015, were as follows:

	% of
	Consolidated	Reportable
	Revenues	Segment
Year Ended December 31, 2017:
Saudi Aramco	63%	MENA
Inpex Operations Australia Pty Ltd	11%	APAC
Year Ended December 31, 2016:
Inpex Operations Australia Pty Ltd	33%	APAC
Saudi Aramco	26%	MENA
RasGas Company Limited	12%	MENA
Year Ended December 31, 2015:
Inpex Operations Australia Pty Ltd	36%	APAC
Saudi Aramco	28%	MENA

Information about Service Lines and Operations in Different Geographic Areas

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

	Year Ended December 31,
	2017		2016		2015
	(in thousands)
Service line revenues:
Offshore	$	2,379,959	$	1,610,907	$	1,745,685
Subsea and other		604,809		1,025,076		1,324,590
	$	2,984,768	$	2,635,983	$	3,070,275

Geographic revenues:
Saudi Arabia	$	1,964,749	$	767,119	$	900,483
Australia		344,071		881,812		1,157,723
India		201,255		56,027		-
Qatar		149,211		419,963		46,873
Mexico		142,708		112,484		247,859
United States		101,821		95,996		32,858
Brunei		52,928		-		237,337
Russia		18,374		108,392		-
United Arab Emirates		5,362		54,392		185,606
Other countries		4,289		139,798		261,536
	$	2,984,768	$	2,635,983	$	3,070,275

Information about Segment Assets and Property, Plant and Equipment by Country

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

	Year Ended December 31,
	2017		2016
	(in thousands)
Segment assets:
NCSA	$	917,281	$	719,584
EARC		2,559		8,778
MENA		1,021,850		907,686
APAC		887,289		976,517
Corporate and Other		393,841		609,665
Total assets	$	3,222,820	$	3,222,230

Property, plant and equipment, net⁽¹⁾:
Indonesia	$	677,014	$	73,213
United States		365,146		27,482
United Arab Emirates		180,777		318,822
Brazil		177,377		170
Saudi Arabia		173,775		22,608
Mexico		86,023		603,185
Australia		51		626,605
Other countries		5,651		15,216
Total property, plant and equipment, net	$	1,665,814	$	1,687,301

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

Other Information about Segment

5. Information about our Unconsolidated Affiliates:

	Year Ended December 31,
	2017			2016			2015
	(in thousands)
Equity in loss of unconsolidated affiliates:
NCSA	$	(2,228	)	$	(1,689	)	$	(1,113	)
EARC		(4,179	)	$	(3,393	)	$	(5,142	)
APAC		(7,312	)		1,167			(15,137	)
Corporate and other		(509	)		(175	)		(94	)
Total equity in loss of unconsolidated affiliates:	$	(14,228	)	$	(4,090	)	$	(21,486	)

Investments in unconsolidated affiliates:
NCSA	$	78		$	-
EARC		670			2,449
APAC		6,753			14,064
Corporate and other		-			510
Total Investments in unconsolidated affiliates	$	7,501		$	17,023