SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Information about Operations in Different Segments

Summarized financial information for the three and six months ended June 30, 2018 and 2017 is as follows:

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In millions)
Revenues (1) :
NCSA	$	995		$	42		$	1,093		$	70
EARC		58			2			74			18
MENA		469			557			814			867
APAC		108			188			257			353
Technology		105			-			105			-
Total revenues	$	1,735		$	789		$	2,343		$	1,308
Operating income
Segment operating income:
NCSA	$	49		$	(7	)	$	51		$	(5	)
EARC		(8	)		(5	)		(11	)		(3	)
MENA		97			118			167			182
APAC		43			31			116			53
Technology		25			-			25			-
Total segment operating income		206			137			348			227
Corporate (2)		(157	)		(52	)		(235	)		(90	)
Total operating income		49			85			113			137
Depreciation and amortization:
NCSA	$	9		$	7		$	16		$	11
EARC		3			-			3			-
MENA		10			14			16			22
APAC		2			5			9			13
Technology		14			-			14			-
Corporate		20			2			22			4
Depreciation and amortization	$	58		$	28		$	80		$	50
Capital expenditures (3):
NCSA	$	-		$	10		$	2		$	15
EARC		-			-			-			-
MENA		4			5			7			11
APAC		2			2			5			6
Technology		-			-			-
Corporate (4)		18			1			29			49
Total Capital expenditures	$	24		$	18		$	43		$	81

⁽¹⁾ Intercompany transactions were not significant for the three and six months ended June 30, 2018 and 2017, respectively.

⁽²⁾ Corporate operating results for the three and six months ended June 30, 2018 include $63 million and $75 million of restructuring and integration costs, respectively. See Note 11, Restructuring and Integration Costs, for further discussion. Corporate operating results for the three and six months ended June 30, 2018 also include $37 million and $40 million of transaction costs, respectively. See Note 3, Business Combination, for further discussion. Corporate operating results for the three and six months ended June 30, 2017 includes approximately $3 million of gain on sale of assets.

⁽¹⁾ Liabilities associated with assets acquired during the first six months of 2018 and 2017 were $14 million and $3 million, respectively.

⁽¹⁾ 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 party and simultaneously entered into an 11-year bareboat charter agreement.

Information about Assets by Segment

Our assets by segment at June 30, 2018 and December 31, 2017 were as follows:

	June 30, 2018		December 31, 2017
	(In millions)
Segment assets:
NCSA	$	2,080	$	917
EARC		641		3
MENA		1,494		1,022
APAC		1,158		887
Technology		944		-
Corporate		146		394
Total tangible assets		6,463		3,223
Goodwill		3,926		-
Other intangibles, net		1,039		-
Total assets (1)	$	11,428	$	3,223

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