SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2018

	Year ended December 31,
	2018			2017			2016
	(In millions)
Revenues:
NCSA	$	3,928		$	246		$	283
EARC		271			19			112
MENA		1,704			2,120			1,241
APAC		411			600			1,000
Technology		391			-			-
Total revenues	$	6,705		$	2,985		$	2,636

Operating (loss) income:
Segment operating income:
NCSA	$	(1,537	)	$	(4	)	$	63
EARC		(74	)		(13	)		(13	)
MENA		328			451			209
APAC		56			93			100
Technology		(519	)		-			-
Total segment operating income		(1,746	)		527			359
Corporate ⁽¹⁾		(510	)		(220	)		(221	)
Total operating income	$	(2,256	)	$	307		$	138

Goodwill impairment ⁽²⁾:
NCSA	$	1,484		$	-		$	-
EARC		40			-			-
APAC		52			-			-
Technology		592			-			-
Total goodwill impairment	$	2,168		$	-		$	-

Depreciation and amortization:
NCSA	$	59		$	26		$	37
EARC		13			-			-
MENA		51			31			26
APAC		19			36			31
Technology		92			-			-
Corporate		45			8			9
Total depreciation and amortization	$	279		$	101		$	103

Capital expenditures ⁽³⁾:
NCSA	$	5		$	23		$	17
MENA		19			31			18
APAC		12			9			190
Corporate ⁽⁴⁾		50			56			3
Total Capital expenditures	$	86		$	119		$	228

Income (loss) from investments in unconsolidated affiliates:
NCSA	$	-		$	(1	)	$	(1	)
EARC		(5	)		(4	)		(3	)
MENA		5			-			-
APAC		(8	)		(7	)		4
Technology		27			-			-
Corporate		(6	)		-			-
Total income (loss) from investments in unconsolidated affiliates:	$	13		$	(12	)	$	-

	December 31,
	2018			2017
	(In millions)
Segment assets:
NCSA	$	3,257		$	917
EARC		1,169			3
MENA		1,472			1,022
APAC		1,147			887
Technology		2,752			-
Corporate ⁽⁵⁾		(357	)		394
Total assets	$	9,440		$	3,223

Investments in unconsolidated affiliates ⁽⁶⁾:
EARC	$	2		$	1
MENA		60			-
APAC		-			7
Technology		385			-
Corporate		5			-
Total investments in unconsolidated affiliates	$	452		$	8

⁽¹⁾	^{Corporate operating results include:}

2018

•

$48 million in transaction costs associated with the Combination, see Note 3, Business Combination;

•

$134 million in restructuring and integration costs, see Note 12, Restructuring and Integrations Costs;

•

$58 million of vessel related impairment charges, see Note 16, Fair Value Measurements; and

•

$25 million of expense associated with the need to make alternate arrangements for a third-party vessel charter, because the previously designated vessel was withdrawn from the market.

2017

•

$4 million gain on sale of assets; and

•

$9 million in transaction costs associated with the Combination, see Note 3, Business Combination.

2016

•

$55 million of impairment charges, see Note 16, Fair Value Measurements; and

•

$11 million of restructuring expenses, see Note 12, Restructuring and Integration Costs.

⁽²⁾

^{Represents impairment of goodwill associated with our NCSA, EARC, APAC and Technology reporting units, resulting from our impairment assessment during the fourth quarter of 2018. See Note 9, Goodwill and Other Intangible Assets, for further discussion. The goodwill impairment values are included within the applicable operating group’s Operating loss.}

⁽³⁾	^{Capital expenditures reported represent cash purchases. At December 31, 2018, 2017 and 2016, we had approximately $26 million, $8 million and $8 million, respectively, of accrued and unpaid capital expenditures reported in PP&E and accrued liabilities.}

⁽⁴⁾

^{Corporate capital expenditures in 2018 include upgrades to the Amazon. Corporate capital expenditures in 2017 include the purchase of the Amazon, a pipelay and construction vessel described in Note 14, Lease Obligations. Following the purchase, we sold this vessel to an unrelated third party and simultaneously entered into an 11-year bareboat charter agreement.}

⁽⁵⁾	^{Corporate assets at December 31, 2018 include negative cash balances associated with our international cash pooling program.}

⁽⁶⁾	^{The Consolidated Balance Sheets as of December 31, 2018 and 2017 include approximately $15 million and $7 million of accounts receivable, respectively, from our unconsolidated affiliates.}

Significant Impact of Customers on Company Segments

Significant Customer Information

Our significant customers by segments during 2018, 2017 and 2016 were as follows:

	% of
	Consolidated	Reportable
	Revenues	Segment
Year Ended December 31, 2018:
Saudi Aramco	19%	MENA
Sempra Energy	10%	NCSA
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

Operating Information about Revenues by Geography

Operating Information by Geography

	Year Ended December 31,
	2018		2017		2016
	(In millions)
Geographic revenues:
United States	$	3,695	$	102	$	96
Saudi Arabia		1,304		1,965		767
Australia		253		344		882
Mexico		191		143		113
Qatar		173		149		420
India		144		201		56
United Arab Emirates		130		5		54
Denmark		118		-		-
Oman		103		-		-
Other countries		594		76		248
Total revenue	$	6,705	$	2,985	$	2,636

Operating Information about Property, Plant and Equipment, Net by Geography

	December 31,
	2018		2017
	(In millions)
Property, plant and equipment, net ⁽¹⁾:
United States	$	797	$	365
India		429		-
Indonesia		246		677
Mexico		192		86
Dubai		148		-
Bahrain		147		-
Saudi Arabia		54		174
United Arab Emirates		20		181
Brazil		-		177
Other countries		34		6
Total property, plant and equipment, net	$	2,067	$	1,666

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