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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Revenues [1] $ 2,121 $ 2,289 $ 6,469 $ 4,632
Costs and Expenses:        
Cost of operations 2,173 1,986 6,140 3,948
Project intangibles and inventory-related amortization 7 30 27 42
Total cost of operations 2,180 2,016 6,167 3,990
Research and development expenses 9 8 25 13
Selling, general and administrative expenses 40 64 189 188
Other intangibles amortization 21 25 65 35
Transaction costs 14 5 29 45
Restructuring and integration costs 14 31 103 106
Goodwill impairment [2] 1,370   1,370  
Intangible assets impairment 143   143  
Other asset impairments 18   18  
Loss on asset disposals   1 103 2
Total expenses 3,809 2,150 8,212 4,379
Income from investments in unconsolidated affiliates 7 3 19 2
Investment in unconsolidated affiliates-related amortization (3) (13) (8) (13)
Operating (loss) income [3] (1,684) 129 (1,732) 242
Other expense:        
Interest expense, net (108) (86) (300) (169)
Other non-operating income (expense), net   1 (1) (13)
Total other expense, net (108) (85) (301) (182)
(Loss) income before provision for income taxes (1,792) 44 (2,033) 60
Income tax expense (benefit) 72 44 2 (19)
Net (loss) income (1,864)   (2,035) 79
Less: Net income (loss) attributable to noncontrolling interests 9 (2) 26 (5)
Net (loss) income attributable to McDermott (1,873) [4] 2 [5] (2,061) [4] 84 [5]
Dividends on redeemable preferred stock [4] (10)   (30)  
Accretion of redeemable preferred stock [4] (4)   (12)  
Net (loss) income attributable to common stockholders $ (1,887) [4] $ 2 [5] $ (2,103) [4] $ 84 [5]
Net (loss) income per share attributable to common stockholders        
Basic $ (10.37) [4] $ 0.01 [5] $ (11.62) [4] $ 0.60 [5]
Diluted $ (10.37) [4] $ 0.01 [5] $ (11.62) [4] $ 0.60 [5]
Shares used in the computation of net (loss) income per share        
Basic 182 [4] 180 [5] 181 [4] 140 [5]
Diluted 182 [4] 181 [5] 181 [4] 141 [5]
[1] Intercompany amounts have been eliminated in consolidation.
[2] Represents impairment of goodwill associated with our NCSA and EARC reporting units, resulting from our interim impairment assessment during the third quarter of 2019. In addition, in the third quarter of 2019 we recorded $143 million of impairment associated with NCSA intangible assets. The goodwill impairment values are included within the applicable operating segment’s operating loss. See Note 9, Goodwill and Other Intangible Assets, for further discussion.
[3]

(1)

Operating results for NCSA and EARC for the three and nine months ended September 30, 2019 include the impacts of the goodwill and intangible assets impairments discussed below. In addition, NCSA operating results for the nine months ended September 30, 2019 include a $101 million loss on the sale of APP, discussed in Note 4, Acquisition and Disposition Transactions.

Corporate operating results for the three and nine months ended September 30, 2019 included:

 

•

$14 million and $103 million of restructuring and integration costs, respectively;

 

•

$14 million and $29 million of transaction costs, respectively; and

 

•

$18 million of vessel and marine operations related impairment charges, see Note 16, Fair Value Measurements.

Corporate operating results for the three and nine months ended September 30, 2018 included:

 

•

$31 million and $106 million of restructuring and integration costs, respectively; and

 

•

$5 million and $45 million of transaction costs, respectively.

See Note 11, Restructuring and Integration Costs and Transaction Costs, for further discussion.
[4] The effects of stock-based awards, warrants and redeemable preferred stock were not included in the calculation of diluted earnings per share for the three and nine months ended September 30, 2019 due to the net loss for the periods.
[5] Approximately 0.5 million shares underlying outstanding stock-based awards for the three and nine months ended September 30, 2018 were excluded from the computation of diluted earnings per share during the periods because the exercise price of those awards was greater than the average market price of our common stock, and the inclusion of such shares would have been antidilutive in each of those periods.