QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Selected Unaudited Quarterly Financial Information

The following tables set forth selected unaudited quarterly financial information for the quarterly periods in 2019 and 2018:

2019	March 31			June 30			September 30			December 31
	(In millions, except per share data amounts)
Revenues	$	2,211		$	2,137		$	2,121			1,962
Project intangibles and inventory related amortization ⁽¹⁾		10			10			7			7
Gross profit		183			178			(59	)		(115	)
Other intangibles amortization ⁽²⁾		22			22			21			22
Transaction costs ⁽³⁾		4			11			14			28
Restructuring and integration costs ⁽⁴⁾		69			20			14			11
Goodwill impairment ⁽⁵⁾		-			-			1,370			60
Intangible Asset impairments ⁽⁶⁾		-			-			143			19
Other asset impairments ⁽⁷⁾		-			-			18			-
Loss on asset disposals		-			102			-			2
Net loss ⁽⁸⁾		(57	)		(114	)		(1,864	)		(849	)
Net loss attributable to McDermott		(56	)		(132	)		(1,873	)		(848	)
Dividends on redeemable preferred stock ⁽⁹⁾		(10	)		(10	)		(10	)		(14	)
Accretion of redeemable preferred stock ⁽⁹⁾		(4	)		(4	)		(4	)		(4	)
Net loss attributable to common stockholders		(70	)		(146	)		(1,887	)		(866	)

Income (loss) per share
Basic	$	(0.39	)	$	(0.80	)	$	(10.37	)		(4.69	)
Diluted	$	(0.39	)	$	(0.80	)	$	(10.37	)		(4.69	)

2018 ⁽¹⁰⁾	March 31		June 30		September 30		December 31
	(In millions, except per share data amounts)
Revenues	$	608	$	1,735	$	2,289	$	2,073
Project intangibles and inventory related amortization ⁽¹⁾	$	-	$	12	$	30		41
Gross profit		130		237		273		(122	)
Other intangibles amortization ⁽²⁾		-		10		25		27
Transaction costs ⁽³⁾		3		37		5		3
Restructuring and integration costs ⁽⁴⁾		12		63		31		28
Goodwill impairment⁽⁵⁾		-		-		-		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 ⁽⁹⁾		-		-		-		(3	)
Accretion of redeemable preferred stock ⁽⁹⁾		-		-		-		(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	)

⁽¹⁾

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.

⁽²⁾	Represents amortization of other intangible assets acquired in the Combination. See Note 9, Goodwill and Other Intangible Assets, for further discussion.

⁽³⁾

2019—primarily relates to legal and other professional fees associated with the sale processes for the pipe fabrication business and the Lummus Technology business and the now-terminated effort to sell our industrial storage tanks business, as well as professional and other fees associated with the Chapter 11 Cases.

2018—primarily relates to professional service fees (including audit, legal and advisory services) associated with the Combination. See Note 3, Business Combination, for further discussion.

⁽⁴⁾	Primarily represents costs related to achieve our CPI. See Note 12, Restructuring and Integration Costs, for further discussion.

⁽⁵⁾	2019—represents impairment of goodwill associated with our NCSA and EARC reporting units, resulting from our interim and annual impairment assessment. See Note 9, Goodwill and Other Intangible Assets, for further discussion.

2018—represents impairment of goodwill associated with our NCSA, EARC, APAC and Technology reporting units, resulting from our annual impairment assessment.

⁽⁶⁾	Represents impairment of intangible assets, primarily in our NCSA segment. See Note 9, Goodwill and Other Intangible Assets, for further discussion.

⁽⁷⁾	Represents charges associated with the impairment of vessels and other marine equipment, due to changes in their level of planned utilization. See Note 16, Fair Value Measurements, for further discussion.

⁽⁸⁾

Net loss for the quarter ended December 31, 2019 included the impact on interest expense of: (1) $316 million of DIC amortization, primarily associated with the accelerated DIC amortization due to our non-compliance with certain covenants and other obligations contained in our financing arrangements, discussed in Note 13, Debt; (2) $67 million of expense associated with our interest rate swap arrangement, reclassified from AOCI into interest expense, discussed in Note 17, Derivative Financial Instruments; and (3) a $32 million of gain associated with the valuation of the Superpriority Credit Agreement embedded derivative, discussed in Note 13, Debt.

⁽⁹⁾

Represents dividends paid and accrued 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.

⁽¹⁰⁾	Results in the second, third and fourth quarters of 2018 reflect impacts of the Combination from the Combination Date.