QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

NOTE 25—QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables set forth selected unaudited quarterly financial information for the quarterly periods in 2018 and 2017:

	March 31		June 30		September 30		December 31
Quarter ended 2018	(In millions, except per share data amounts)
Revenues ⁽¹⁾	$	608	$	1,735	$	2,289	$	2,073
Project intangibles and inventory related amortization ⁽²⁾	$	-	$	12	$	30		41
Gross profit ⁽¹⁾		130		237		273		(122	)
Other intangibles amortization ⁽³⁾		-		10		25		27
Transaction costs ⁽⁴⁾		3		37		5		3
Restructuring and integration costs ⁽⁵⁾		12		63		31		28
Goodwill impairment ⁽⁶⁾		-		-		-		2,168
Other asset impairments ⁽⁷⁾		-		-		-		58
Net income (loss)		34		45		-		(2,757	)
Net income (loss) attributable to McDermott		35		47		2		(2,771	)
Dividends on redeemable preferred stock ⁽⁸⁾		-		-		-		(3	)
Accretion of redeemable preferred stock ⁽⁸⁾		-		-		-		(1	)
Net income (loss) attributable to common stockholders		35		47		2		(2,775	)

Income (loss) per share
Basic	$	0.12	$	0.33	$	0.01		(15.33	)
Diluted	$	0.12	$	0.33	$	0.01		(15.33	)

	March 31 ⁽⁹⁾		June 30 ⁽¹⁰⁾		September 30 ⁽¹¹⁾		December 31 ⁽¹²⁾
Quarter ended 2017	(In millions, except per share data amounts)
Revenues	$	519	$	789	$	959	$	718
Gross profit		90		139		185		122
Net income		24		36		94		24
Net income attributable to McDermott		22		36		95		26
Income per share
Basic	$	0.27	$	0.38	$	1.00	$	0.28
Diluted	$	0.23	$	0.38	$	1.00	$	0.27

⁽¹⁾	^{Results in the second, third and fourth quarters of 2018 reflect impacts of the Combination from the Combination Date.}

⁽²⁾

^{Represents amortization of fair value adjustments for RPOs acquired in the Combination and normalized profit margin fair value associated with acquired long-term contracts that were deemed to be lower than market value as of the Combination Date. Also included is amortization associated with fair value adjustments to inventory balances acquired in the Combination.}

⁽³⁾	^{Represents amortization of other intangible assets acquired in the Combination. See Note 9, Goodwill and Other Intangible Assets, for further discussion.}

⁽⁴⁾	^{Transaction costs relate to professional service fees (including audit, legal and advisory services) associated with the Combination. See Note 3, Business Combination, for further discussion.}

⁽⁵⁾	^{Restructuring and integration costs primarily relate to costs to achieve our CPI. See Note 12, Restructuring and Integration Costs, for further discussion.}

⁽⁶⁾	^{Represents impairment of goodwill associated with our NCSA, EARC, APAC and Technology reporting units, resulting from our annual impairment assessment. See Note 9, Goodwill and Other Intangible Assets, for further discussion.}

⁽⁷⁾	^{Represents charges associated with the impairment of two vessels within our Corporate operating group, due to changes in their level of planned utilization during 2018. See Note 16, Fair Value Measurements, for further discussion.}

⁽⁸⁾

Represents dividends paid on the shares of 12% Redeemable Preferred Stock and accretion of the stock over the seven years from November 29, 2018 through the expected redemption date of November 29, 2025, using the effective interest method. See Note 21, Redeemable Preferred Stock, for further discussion.

⁽⁹⁾	^{The first quarter of 2017 operating results improvement was driven by strong cost management, with significantly lower project costs in our MENA and APAC segments, and improvements in our selling, general and administrative expenses.}

⁽¹⁰⁾	^{Operating results for the second quarter of 2017 continued to reflect efficient project execution and higher engineering, fabrication and marine activity and improved productivity on multiple projects primarily in our MENA segment.}

⁽¹¹⁾	^{Operating results for the third quarter of 2017 reflect high quality operational performance, while operating with peak levels of utilization in the MENA segment and progressing on the Inpex Ichthys project.}

⁽¹²⁾	^{Operating results for the fourth quarter of 2017 were primarily driven by higher fabrication and marine activity in the MENA segment and installation progress on the Inpex Ichthys project.}